Kraftfoods. Creating a more delicious world

Creating
a more
delicious
world
Our 2010 repOrt

Message from Our Chairman and a 2 b

Chief Executive Officer

Ever since my first “job” selling as a global food company, we can help raise
people up—out of hunger, out of poverty, toward
girl scout cookies, i believed healthier lifestyles—through what we make and
that business could be a force how we make it. Millions of times a day … in ways
big and small … quite literally around the world,
for good. today, i know it is. we’re doing just that. and we do it at multiple
points in our supply chain … from our agriculture
Business is a vital part of the success of most sourcing initiatives that have made us a leading
nations. from Chile to China. the united states purchaser of sustainable cocoa, coffee and
to ukraine. Well-run businesses contribute to cashews to our finished products, like Biskuat
society in so many ways: Providing jobs, creating and Tiger fortified biscuits that help indonesian
robust supply chains, revitalizing communities, moms ensure their kids get the right vitamins
innovating solutions for some of the world’s and minerals to grow to their full potential.
toughest challenges, contributing to public
coffers and delivering shareholder returns that “Creating a more delicious world” is a lofty
irene B. rosenfeld enable further investment. But companies that goal to be sure. But we make it achievable by
Chairman and can successfully and simultaneously balance taking a pragmatic approach. first, we focus
Chief Executive Officer the short- and long-term interests of the our efforts where we can make the greatest
multiple constituents they serve can do the difference. Our global priorities are food safety,
most good. they can, indeed, change the health and well-being, and sustainability. next,
world for the better. we agree on the goals, strategies and actions
to achieve each priority.
that’s one of the reasons i’m so proud to
be leading Kraft foods, where we say that Our goals, whether financial or philanthropic,
“delicious is our difference.” Yes, our products are designed to be ambitious, but achievable.
taste delicious. But to us, it’s more than that. Our strategies are long term, spanning
delicious is also our corporate purpose … the decades in some cases. But the targets we
mindset and spirit we apply to everything we set to evaluate our progress are measured in
do and how we do it. it’s also why we titled increments of five years or less. that way, the
this report, “Creating a more delicious world.” same people who set the targets can also be

MEssagE frOM Our ChairMan and ChiEf ExECutivE OffiCEr Index

CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt a 3 b

held accountable for delivering them. finally, We’re not perfect, and we’re not finished. But
our actions focus on what we call the “three Ps” by focusing on what matters most and where
for creating lasting change: Products, Policies we can make the biggest difference, i am
and Partnerships. all three are important, but confident we’re on the right path. We’re working
i want to elaborate a bit on Partnerships. Even to support healthier lifestyles and sustainable
though there is a lot we can do as the world’s agriculture. seeking solutions that, by design,
second-largest food company, many of the benefit our business and our society. Working
issues we’re tackling are so big that we can for outcomes that are sustainable and scalable.
only achieve lasting change when we work and sharing our progress and setbacks along
with others. so together with our suppliers, the way. We can’t do everything, but we are
customers and consumers … with governments, doing a great deal. We’re proud of what we’ve
multilateral organizations and nongovernmental accomplished and how it is helping consumers
organizations (ngOs) … we look for innovative and communities around the world live more
ways to combine our inherent strengths and deliciously every day.
capabilities to achieve the kinds of significant
irene rosenfeld helps build
change we all want—for ourselves, for our
a playground in Chicago’s
Washington Park, one of children and for generations to come.
13 playgrounds built as part of
our partnership with KaBOOM! in the following pages, i encourage you to
during delicious difference take a look at what we’re doing and what we’ve
Week in 2010. during this accomplished, on our own and in partnership
week, nearly 25,000 employees
with others around the world. this report covers irene B. rosenfeld
in 56 countries engaged in
community activities to help both the legacy Kraft foods and Cadbury Chairman and Chief Executive Officer
fight hunger and promote businesses and summarizes our 2010 progress Kraft foods inc.
healthy lifestyles. in the areas of highest societal interest. May 2011

MEssagE frOM Our ChairMan and ChiEf ExECutivE OffiCEr Index


table of Contents

Delicious @ Work Highlights .........................................................................................................................5

From Our Partners ..................................................................................................................................................6

Health and Well-Being: Eat delicious, live well .............................................................................8

Sustainability: Now and for future generations........................................................................ 20

Food Safety and Quality: Better practices deliver the best results........................ 36

Workplace and Culture: Becoming performance-driven, values-led ..................40

Governance and Compliance: Inspiring trust.............................................................................. 46

taBlE Of COntEnts Index


delicious @ Work highlights
since 1999 in the u.s. during the last five years, in 2010, we reduced sodium in 2010, women made
alone, we’ve helped we’ve improved the nutrition in 340 north american up 35% of management
provide more than profile of more than products—removing nearly worldwide.
1 billion servings 5,500 products 3 million kilograms 43% of our
of food (6.5 million pounds) salaried employees
of salt were women

today, we’re helping to since 2005, we’ve significantly increased our purchases of We’ve cut
improve the livelihoods
of more than
certified coffee and cocoa (measured in metric tons)
Kraft Foods certified coffee and cocoa bean buying
p 97 million
1 million farmers
through partnerships
Rainforest Alliance
Certified™ coffee
50,000
kilometers*
Fairtrade sugar
24,000 (60 million miles) from our
that support sustainable Fairtrade cocoa 19,000
Rainforest Alliance 11,000 global transportation network
agriculture Certified™ cocoa
2005 2006 2007 2008 2009 2010

We’ve cut greenhouse gas emissions We’ve reduced We’ve reduced water We’ve cut our packaging
and energy use by our waste by consumption by by nearly

p 18% p 16% p 42% * * *
p 30% * p 100,000
greenhouse energy metric tons*
gases use (200 million pounds)

*data normalized to production with a 2005 baseline.

dEliCiOus @ WOrK highlights Index

from Our Partners a 6 b

“InMed Partnerships for Children is proud to work with the Kraft Foods Foundation toward
our shared goals to fight hunger and malnutrition, and to help youth put health into action.
Together, we are creating hope and opportunity for the next generation, providing more
than 100,000 of Brazil’s most vulnerable youth with the foundation of knowledge and
good health they need to transform their futures.”

Linda pfeiffer, Ph.d., President and CEO, inMEd Partnerships for Children

“As the numbers of
hungry increase,
we need private
companies like
Kraft Foods to join us
in the fight against
hunger. It’s a fight
too big for any one
player, but together
we can find new ways
to dramatically reduce
malnutrition.”

Josette Sheeran,
Executive director, “Kraft Foods Foundation is helping to make
World food Programme nutritious food available in schools and
communities to combat the high rates of
malnutrition in young children. Families are
also learning the skills they need to make
healthy choices to improve the nutritional
status of their children. The Foundation’s
impact will be felt for generations.”

Charles MacCormack,
President and CEO, save the Children

frOM Our PartnErs Index


“We are all responsible “CARe is pleased to be working alongside Kraft Foods to improve
for ensuring the long- the lives of people living in poor communities. Through savings,
term health of our education, entrepreneurship and innovative technologies, thousands
planet. As the leading of cocoa farmers are benefiting from more sustainable cocoa
purchaser of coffee and farming systems. Together, we are making a real difference in the
cocoa from rainforest lives of many rural families around the globe.”
Alliance Certified™
Helene D. Gayle, Md, MPh, President and CEO, CarE
farms, Kraft Foods
is doing its part by
helping farmers earn
a good living as they
conserve wildlife
habitats and the vital
natural resources on
which we all depend.”

tensie Whelan,
President,
the rainforest alliance

“Soon, 9 billion people will seek to improve their
lives in the context of a single planet. And every business
in every industry will be forced to grapple with finding
ways to meet their needs while using less water, carbon
and land. We work with companies like Kraft Foods that
are willing and able to influence the future of the planet
by working to positively advance the way agricultural
commodities are produced, bought and sold.”

Carter roberts, President and CEO, World Wildlife fund, u.s.
“Kraft Foods’ commitment to Fairtrade is helping to build a better future for many
thousands of cocoa farmers, their families and their communities. Through this
commitment, farmers can enjoy more secure, sustainable livelihoods. We look forward
to building on this partnership to create a better future for even more farmers.”

rob Cameron, Chief Executive, fairtrade labelling Organizations (flO) international

frOM Our PartnErs Index


hEalth and WEll-BEing sustainability food SAfETY And QuAliTY Workplace and culture governance and
compliance

HeALtH AnD WeLL-BeinG: today, the world faces the paradoxical
challenge of addressing both hunger and

Eat dEliCiOus,
obesity. according to the World Health
Organization, one in six people in the world
doesn’t get enough to eat. at the same time,

livE WEll
one in five is overweight or obese.

tackling such complex challenges requires
a collaborative approach involving consumers,
companies, governments and civil society.

so we take a three-pronged approach,
combining our products, policies and
partnerships, so our cumulative efforts
can help make a real difference.

Our focus is to make our brands—
foods consumers love—nutritionally
better and more wholesome, without
compromising taste.

hEalth and WEll-BEing: Eat dEliCiOus, livE WEll Index


compliance

prODuCtS pOLiCieS pArtnerSHipS Products: Making the foods since 2005, we’ve reformulated or launched
people love even better more than 5,500 products that meet one
or more of these focus areas. Our goal is
around the world, people eat and drink about to continually grow the number of options
900 million servings of Kraft foods products in our portfolio that give consumers better
every day. that gives us an enormous choices for healthier and more wholesome
opportunity to have a positive impact on foods. it’s good for consumers and it’s good
consumers’ health and well-being. so our focus for business.
is on making our products more nutritious and
more wholesome, while still delivering the same
ReMOVInG OR RedUCInG nUTRIenTS
delICIOUS @ WORK delicious taste people have come to expect.
COnSUMeRS WAnT leSS OF
Some of our 5,500 better Based on what our consumers tell us they SOdIUM Much of the world’s population is
choices worldwide:
want, we focus our efforts on three areas: consuming too much sodium. While sodium
Brazil: Mini Philadelphia cream reduction isn’t new for Kraft foods, in 2010
cheese with 40 percent less sodium • foods with less fat, sodium, sugar we began to accelerate our efforts to further
than the local Requeijão cheese. and calories. reduce it in our products, without compromising
iberia: Fruit & Fit biscuits, made with taste or safety. this is a tough challenge for
30 percent fruit and just 49 calories
• foods with more beneficial ingredients,
such as whole grains, fiber, healthier the entire food industry, but we feel good
per biscuit.
oils and micronutrients. about our progress:
philippines: Tang Fruitrition, a
powdered beverage mix fortified • foods that are “simpler:” easier-to- • in the u.s. and Canada, our largest and
with a combination of vitamins and understand ingredient lines and fewer most diverse portfolios, we announced plans
minerals found in fruit juices and artificial ingredients.
needed by the population.
to cut sodium by an average of 10 percent
by 2012 across the portfolio. in 2010 alone,
for more examples, see our we removed nearly 3 million kilograms
Health & Wellness Fact Sheet.
(6.5 million pounds) of salt from 340
products. and we plan to reduce sodium
in hundreds more products.



compliance

prODuCtS pOLiCieS pArtnerSHipS • in latin america this year, we initiated plans • in Europe, since 2008, we reduced saturated
to reduce sodium by an average of fat by 54 percent in our Prince biscuits.
5 percent—equal to 227,000 kilograms We’re also eliminating partially hydrogenated
(0.5 million pounds) of salt—across our vegetable oils from our biscuits and exploring
biscuit and cheese lines by the end of 2012. ways to reduce or limit these oils in other
products worldwide.
• in Europe, we continued our sodium
reduction efforts with our Dairylea cheese • in australia, we launched Philadelphia
lines, where we’ve reduced sodium by cooking cream, a dairy-based cooking
30 percent since 2002. product that has 60 percent less fat
than regular cooking cream.
SATURATed And TRAnS FATS heart disease
is one of the leading causes of death worldwide.
research has shown that reducing saturated
fats and trans fats may help to improve heart
health. and we know our consumers look at
the fat content of products when trying to make
healthier choices. that’s why over the years,
we’ve been removing saturated and trans fats.

• in the u.s., we reformulated our 2 percent
cheeses so that they taste just as good as
full-fat cheese, and we launched our fat-free
Tassimo skinny Cappuccino.



compliance

prODuCtS pOLiCieS pArtnerSHipS SUGAR Consumers are also seeking products in Europe, we offer our Belvita biscuits in
with less sugar, and health officials are 100 calorie packs and our Prince biscuits
encouraging people to eat less as well. so, now contain less than 100 calories per serving.
we’ve taken action: We also sell Cadbury Highlights, a low-calorie
drinking chocolate, with only 40 calories and
• in the u.s., we reduced the sugar in our less than 1 percent fat per serving. throughout
Capri Sun juice drinks. We also introduced the u.s. and Canada, we have a wide variety of
sugar-free Jell-O Mousse cups. biscuits and cheeses in 100 calorie packages.
• in latin america, we reduced the sugar
Kraft foods is a founding member of the
in our Tang powdered beverages and we
Healthy Weight Commitment Foundation—
introduced several sugar-free products,
a multiyear effort launched in 2009 to help
including Clight powdered beverages.
reduce obesity in the u.s., especially among
• in Europe, we reduced the sugar in children. as part of that commitment, we
delICIOUS @ WORK our Belvita biscuits by about 8 percent continue to develop and introduce lower calorie
during the last four years. options of many of our brands. We’ve changed
these are just some of the Kraft
recipes where possible to lower the calorie
foods brands where we’ve either • and globally, we offer sugar-free versions
lowered the sugar content or offer content or reduced portion sizes of existing
of Halls throat lozenges and Trident gums.
a sugar-free option. single-serve products. in 2010, the foundation
members pledged to reduce 1.5 trillion calories
CAlORIeS today, many consumers are
in their portfolios by the end of 2015, using
looking for foods that are either lower in
2008 as the baseline.
calories or come in portion sizes that can help
them control their caloric intake. to meet this
need, we offer a range of calorie- and/or AddInG InGRedIenTS COnSUMeRS WAnT
portion-controlled options. We’re not just removing ingredients consumers
don’t want; we’re also adding more of what
they do want.



compliance

prODuCtS pOLiCieS pArtnerSHipS WHOle GRAInS Most consumers don’t get eSSenTIAl VITAMInS And MIneRAlS to help
enough whole grains. so we’re finding new address malnutrition in developing markets, we
ways to increase the whole grain content of offer foods fortified with micronutrients. We
our products. Our researchers have developed don’t simply add the nutrients people need.
a proprietary technology that enables us to We invest in technology that helps ensure
use the whole germ of the grain. When we that the nutrients we use can effectively and
add whole grains to our products, we’re now efficiently be absorbed by the body. and we
able to provide consumers with much more price these products affordably so they are well
of what they want and need, while maintaining within reach for millions of consumers with
the taste they love. limited disposable income. Examples include:

delICIOUS @ WORK • in the u.s., in 2010, we announced that we • Tiger and Biskuat biscuits, sold in indonesia,
would double the amount of whole grains in are fortified with nine vitamins and six
here are some examples where
we’ve increased whole grain our Nabisco cracker brands by 2013. When minerals. developed in collaboration with the
content in our European biscuits. we’re done, Nabisco crackers will account World Food Programme and The Indonesian
for 9 billion servings of whole grains in the Association of nutritionists, our biscuits
american diet each year. supplement the daily nutritional requirements
of a growing child, at an average cost of 100
• in latin america, we added whole grains to
to 500 rupiah (between one and six cents
our popular Trakinas, Belvita, Ceralitas and
u.s.) per pack.
Club Social biscuits.
• globally, we fortify our Tang powdered
• in the Eu, we increased the number of our
beverage drink with vitamin C and add other
biscuit and crisp bread products that contain
key nutrients specific to a country’s needs—
whole grains by 50 percent.
such as iron in southeast asia, vitamin B-12
• and, in China, we launched the country’s and folic acid in China, iodine in the Middle
first whole grain biscuit, which provides East, and vitamins a and E in argentina
10 percent of the recommended daily and uruguay.
amount of fiber in one serving.



compliance

prODuCtS pOLiCieS pArtnerSHipS Our affordable nutrition products have small remove and prevent the formation of stains when
price tags, but they are big business for us. used as part of a normal teeth-cleaning routine.
that’s why we chose to invest in expanded
capacity. that way, we can bring more Policies: leading in ways
consumers more of the essential vitamins and
minerals they need at prices they can afford.
that make a difference
nutrition awareness and education are critical to
HeAlTHy SMIleS People chew gum for a helping consumers make better choices about
variety of reasons—to help relieve stress, to their health and well-being. Our marketing and
improve dental health and freshen breath, or communication policies are designed to ensure
to relax and enjoy a refreshing break. research that consumers have clear nutrition information
delICIOUS @ WORK has shown there are many oral health benefits about our products.
from chewing gum … especially if it’s sugar-
few low-income families in Brazil
have access to oral care. so by
free … and the American dental Association AdVeRTISInG TO CHIldRen how we market
the time they are lucky enough and World dental Federation agree. Just the our products matters. that’s why we take great
to see a dentist, their conditions physical action of chewing gum for at least care to market and advertise responsibly—
are often extreme. 20 minutes after eating stimulates saliva flow, especially to children. in 2005, we became
that’s where dentista do Bem helping to prevent cavities by reducing plaque the first company to announce global policies
(dentist for good) comes in. acids and strengthening teeth. for advertising to children*, with three main
sponsored by Trident chewing focus areas:
gum since 2006, dentista do today, more than 70 percent of our gum
Bem provides free dental services, worldwide is sugar-free. in addition, our Trident • We don’t advertise to children under
including reconstruction and
Xtra Care and Trident Total sugar-free gums, age 6 (long-standing policy).
preventive treatment, to
underprivileged children— available in several countries, contain the
• for children ages 6 through 11, we only
until they reach the age of 18. proprietary ingredient recaldent. research has
advertise those products that meet
shown that chewing a recaldent-containing
in 2010, 15,000 children received specific nutrition criteria.
free dental care—and now are
gum—versus a regular sugar-free gum—helps
proudly showing their smiles. strengthen teeth by actively promoting tooth • We don’t advertise in primary or
re-mineralization and protecting against tooth secondary schools.
decay. People want healthy teeth and they want
them to look good, too. Our sugar-free Trident
White gum has been clinically shown to help * in late 2010, the legacy Cadbury business began implementing these
provisions and will be in full compliance by January 2012.



compliance

prODuCtS pOLiCieS pArtnerSHipS Our practices have become the model for how Our labels list the amount of each nutrient
and what many other companies advertise to in a given portion of the product and/or per
children. We were a founding member of the 100 grams or milliliters, depending on local

“Market International Food & Beverage Alliance, and,
along with other members, made a global
regulations. in most cases, our labels also
include the percentage that each nutrient

responsibly.” commitment to the World health Organization
to advertise only products that meet specific
provides of the recommended daily value (dv),
daily intake (di) or guideline daily amounts
nutrition criteria to children under age 12 and to (GdAs)—or the local equivalent where available.
Kraft foods Code of Conduct, rule 2
monitor our efforts. We’ve made similar pledges
in australia, Brazil, Canada, india, Mexico, We’re also pursuing front-of-pack labeling that
russia, south africa, turkey, u.s. and all Eu delivers meaningful information at a glance, and
countries. implementing pledges at the national are increasing our front-of-pack labeling around
level encourages local companies to follow our the world. in australia and the Eu, we provide
lead and to improve the types of products they front-of-pack information on calories, based on
advertise to children as well. the percentage of di and percentage of gda,
respectively. in the u.s., we support nutrition
PROdUCT lABelInG since 2007, we’ve Keys a front-of-pack program, developed by the
provided nutrition labeling on products Grocery Manufacturers Association and Food
worldwide. Marketing Institute. and in asia Pacific, we are
currently exploring front-of-pack options with
following the recommendations of the Codex the broader food industry.
Alimentarius, a set of globally recognized,
widely used food standards, our labels provide
information on calories plus seven key nutrients
where space permits: protein, carbohydrates,
sugar, fat, saturated fat, fiber and sodium. On
very small packages and others with limited
space, we list calories, protein, carbohydrates
and total fat, per Codex recommendations.



compliance

prODuCtS pOLiCieS pArtnerSHipS We also provide nutrition information online Partnerships: Together
and via toll-free consumer call centers. Our we can make it happen
healthy living websites in several countries
offer lifestyle tips and recipes. and in the u.s., it takes all sectors of society to successfully
our Good eating, Good living website provides fight global hunger, obesity and the underlying
information for people living with diabetes. causes of malnutrition. so, in communities
We also provide this information in spanish throughout the world, we’re working with
at our comidakraft.com website. nongovernmental organizations (ngOs)
delICIOUS @ WORK that demonstrate they know how to make
Whether it’s a hard-to-reach rural as we develop and assess our policies, we a real difference.
area or an urban neighborhood engage with other organizations. for example,
without a grocery store, the Kraft we have participated in consultations with the Our partnerships are built on a long history.
foods Mobile Pantry program is and in 2009, Kraft foods and its foundation
World health Organization on the subjects of
making a difference for families
sodium intake and advertising to children. in renewed their commitment, providing
living in the u.s. “food deserts.”
Brazil, we’ve facilitated conversations among $180 million of cash and food over three years
in 2009, our company and our technology and nutrition teams and to leading community organizations that help
foundation pledged $4.5 million meet immediate needs and create long-term
leading nutritionists and health professionals
over three years to feeding america.
the mobile pantry program is on local nutritional needs. in Europe, our change. these partners work to give families a
bringing more food—and better biscuit research and development teams take “hand up” rather than a “handout” by providing
nutrition—to children and families part in global forums on whole grains with key the nutrition education and economic
who need it most. nutrition and public health leaders, including empowerment to create lasting change.
the fleet of 25 mobile pantry trucks the european nutrition Congress and
brings fresh produce, protein and HeAlTHGRAIn Forum. Whether it’s helping farmers grow and sell
dairy products into communities their cocoa crops or teaching families the
where access to food is challenging. and our own Worldwide Health & Wellness fundamentals of good nutrition, together
they’ll deliver 50 million meals over with our partners, we are providing the
Advisory Council informs our work and helps
three years.
guide our efforts in providing consumers with necessary tools that empower communities
www.feedingamerica.org more choices to meet their needs in health to successfully combat hunger and related
and well-being. health issues themselves.



compliance

prODuCtS pOLiCieS pArtnerSHipS PARTneRSHIPS On THe FROnTlIneS OF • empowering local food entrepreneurs—
FIGHTInG HUnGeR And MAlnUTRITIOn We know that when women earn income,
90 percent of it gets reinvested into families.
“ If women in rural areas had indonesia and Bangladesh rank fifth and sixth, so to help break the cycle of poverty, we’re
respectively, for the highest rates of chronic helping women operate mobile retail stores
the same access to land, child malnutrition. so in 2010, our company
technology, financial services, (bikes or carts) that sell nutritious foods,
and foundation entered a five-year public- soap and agricultural supplies. this helps the
education and markets as private partnership with the World food women make a living while bringing needed
men, agricultural production Programme to tackle the root causes of products and supplies to their communities.
could be increased and the malnutrition. Called Project laser Beam, our
part of the program has three components: • encouraging lifelong healthy habits—
number of hungry people
in addition to working with farmers
reduced by 100–150 million.” and entrepreneurs, we’re also training
• Supporting local farming—given that
The State of Food and Agriculture, nearly 75 percent of families facing hunger community leaders to deliver nutrition
2010–2011 live in rural areas, often the most immediate education at schools and other places
solution is to support local agriculture. to where families gather.
www.fao.org
that end, Project laser Beam is helping
to establish women-operated rural farms
that grow vegetables and raise livestock.
By giving women access to seeds, fertilizers
and credit, we equip them to provide food
for their families and offer a chance for
long-term income.



compliance

prODuCtS pOLiCieS pArtnerSHipS Our foundation has been working with Save in China, since 2009, we’ve built 100
the Children since 2009 to help malnourished “Kraft Hope Kitchens” in five rural Chinese
families in southeast asia. today, they’re provinces in partnership with the China youth
working in indonesia and the Philippines to development Foundation. When we launched
tackle malnutrition by teaching healthy eating the program, surveys showed nearly 70 percent
and hygiene habits. of students at these schools felt hungry during
the day and more than 30 percent sometimes
• indonesia: With the help of save the couldn’t get enough to eat. the kitchens
Children, the foundation is working through provide children hot, safely prepared foods. they
a unique system of female volunteers who provide teachers, parents and staff with new
consider it a privilege to help other mothers skills for nutritious cooking and safe food
and kids in their communities. Children and handling. By the end of 2010, we had helped
delICIOUS @ WORK their moms are learning nutrition practices thousands of children get hot, nutritious meals.
and taking those lessons home so the whole More than that, we are giving them—and their
When amy abing came to save the
family eats better. and it’s working. the villages—a start toward long-term health.
Children’s gardening training in the
Philippines, she seemed discouraged government is expanding the program.
and malnourished. a single mother
• philippines: Our foundation is also working
with a kidney ailment, she earns
$8 a month. timidly, she said there to help mothers set up and maintain urban
were miserable days when she and vegetable gardens. With very limited space,
her two children missed meals. they use recycled plastic containers to grow
local crops, such as pechay, kangkong and
at the class, sponsored by the
Kraft foods foundation, amy learned labanos. this program won the 2010 asian
how to plant and maintain an urban Corporate social responsibility award.
garden. from her small plot, she
now feeds her two daughters and
even has a little left over to sell to
neighbors. “nowadays, my children
and i eat cooked rice with boiled
vegetables dipped in vinegar with
salt and sliced onions,” she boasts.
www.savethechildren.org



compliance

prODuCtS pOLiCieS pArtnerSHipS PARTneRSHIPS PROMOTInG • u.S.: Our foundation works with The
HeAlTHy lIFeSTyleS national latino Children’s Institute (nlCI)
and the yMCA of the USA (y-USA) to
“ 38 percent of Hispanic kids Just as we’re working with others to fight address the obesity epidemic among latino
hunger, we’re also partnering to help families children in the u.s. in 2002, we partnered
ages 2 to 19 are overweight get healthy.
or obese, compared with with nlCi on a program called Salsa, Sabor y
Salud (“food, fun and fitness”). Created by
32 percent of other kids the • u.S.: Millions of americans live in “food latinos for latinos, this program engages
same age.” deserts,” and many families must travel whole families to eat healthier food and
long distances to reach stores that sell increase their physical activity. now our
Journal of the American Medical fresh produce and other foods necessary to
Association, 2010 foundation is working with the Y-usa to
maintain a healthy diet. The Food Trust is our expand Salsa, Sabor y Salud into 130
www.ama-assn.org foundation’s partner to increase access to communities nationwide.
fresh foods at local supermarkets, with the
aim of ultimately reducing the prevalence of • uK and russia: Childhood obesity is on
obesity and other diet-related issues in the rise in both of these countries. in 2004,
underserved communities. the food trust we launched an initiative in the uK with
advocates policies that bring new stores education experts called health4schools.
offering fresh foods to help build healthier it’s an award-winning program that teaches
communities. in 2008, we began working children to grow vegetables, prepare healthy
with the food trust in illinois. and we’re now salads and play active games. after the uK
expanding to four more states: georgia, launch, we quickly realized that russian kids
Massachusetts, Minnesota and texas. could benefit as well. so, our foundation
partnered with the Charities Aid Foundation
to help families make smarter food choices
and become more physically active.
health4schools has also enabled several
russian schools to upgrade cafeterias
and purchase new gym equipment.



compliance

prODuCtS pOLiCieS pArtnerSHipS • Brazil: the country’s most prominent charity Working toward the day
helped us understand that malnutrition is when everyone can eat
pervasive in the favelas (urban slums) and
remote rural regions of Brazil. Poor children
delicious and live well
don’t have enough to eat and often get sick Challenges don’t come much bigger than
from parasites in the soil and water. With global hunger and obesity. solving them
InMed Partnerships for Children, the Kraft takes collaboration. We’re doing our part by
foods foundation introduced a school-based increasing the number of “better choice”
health program that teaches children to grow options in our product portfolio to help
fresh produce for their schools and the consumers as they strive to eat better; following
surrounding community. Moms are starting marketing and communications policies that
delICIOUS @ WORK their own gardens and cooking healthier help people make informed choices and
meals. and school food workers are learning understand how our foods fit into a balanced
at a small school in Brazil, the play
is the thing. students producing
about food safety and nutritious cooking. the diet; and partnering with others to take action
a retelling of Little Red Riding program also supports low-cost, low-tech and get the results that enable lasting change.
Hood cast the Big Bad Wolf as water purification, along with treatment for We’ll continue working to help speed progress
a vegetarian who wanted to eat children with intestinal parasites and anemia. toward the day when everyone in the world eats
the vegetable garden. delicious and lives well.
One boy, normally shy and stunted
from malnutrition, joined in like
never before. his kinetic enthusiasm
galvanized the class as he
transformed into a natural leader.
“We were caught off guard by
how strongly the health in action
program with inMEd Partnerships
for Children hooked the kids to
think about nutrition in a fun way,”
observed a member of our
visiting team.
www.inmed.org



health and well-being sustainaBilitY food SAfETY And QuAliTY Workplace and culture governance and
compliance

SuStAinABiLity: sustainability is about conducting business
in a way that is environmentally, socially and

nOW and economically responsible. it’s about living
today, while being mindful of tomorrow.

fOr futurE
the demands being placed on the planet
are growing. Experts predict that the world’s
population will reach just about 9 billion by

gEnEratiOns
2050. and standards of living are expanding
in much of the developing world. these
developments put incremental strain on the
planet. in some areas, experts find that natural
resources are being depleted faster than the
earth can replenish them. Clean water and
arable land are becoming scarce. Clearly, we
must think and behave differently.

as a food company, Kraft foods is dependent
on the earth for the raw materials we use every
day to make our products. We are changing the
way we do business to become more sustainable.
given the size and complexity of the issues,
“development that meets the needs of the we’re partnering with others—peer companies,
present without compromising the ability of governments, ngOs, farmers, suppliers and
future generations to meet their own needs.” consumers—to find innovative, scalable solutions.

united nations–sponsored Brundtland Commission report

sustainaBilitY: nOW and fOr futurE gEnEratiOns Index


compliance

s i m p rove
ti nuou me
nt
Six areas of focus By the end of 2015, using 2010 as our base
c on year, we plan to*:
sustainability is a strategic business priority for
TRANSPORTATION/ AGRICULTURAL Kraft foods. We focus on areas that matter • increase sustainable sourcing** of
DISTRIBUTION COMMODITIES most to our business and where we can make agricultural commodities by 25 percent.
the biggest impact. Our “sustainability Wheel”
represents our focus areas and serves as our • Eliminate 50,000 metric tons (100 million
framework for building sustainability into pounds) of packaging material.
WASTE design PACKAGING
everything we do. We use the wheel to measure • reduce energy use in our manufacturing
and reward improvement. Our six areas of focus plants by 15 percent.
are: agricultural commodities, packaging, energy,
water, waste and transportation/distribution. • reduce energy-related carbon dioxide
WATER ENERGY
emissions in our manufacturing plants
in 2006, we set aggressive five-year goals*. in by 15 percent.
2010, after integrating the Cadbury and lu • reduce water consumption in our
businesses and looking to continuously improve manufacturing plants by 15 percent.
Sustainability Wheel
upon our successes, we expanded our initial
• six areas of focus. goals. for our 2011–2015 goals, we’ve added • reduce waste at our manufacturing
• design in sustainability upfront. sustainable agriculture and transportation plants by 15 percent.
• Continuously improve going forward.
to what we’re measuring. • reduce 80.5 million kilometers (50 million
miles) from our transportation network.

*Measured against total production
**“sustainably sourced” defined as third-party certification or verification



compliance

004
UndeRSTAndInG OUR IMPACT We also use environmental management
1:2
00
systems in our manufacturing facilities
the more we can see and understand the
14
ISO

worldwide. in 2010, dnV, a leading global
potential impact our actions may have, the
registrar for isO, certified that our systems met
more effective our efforts can be. to improve
the requirements of ISO 14001, the premier
upon what we’ve done, we seek third-party
international standard for environmental
insight, which helps us evaluate our progress
management. isO 14001 provides a framework
and determine where to improve or adjust.
for continuous improvement within our facilities.
a key advisor is environmental Resources
Cadbury plants, which we acquired in 2010,
Management (eRM), an independent global
were not included in the current isO 14001
environmental management and technical
certification. We are revising our environmental
consulting firm. ErM has verified the
management systems to provide consistent
environmental performance indicators for
standards for all our facilities.
our manufacturing facilities that we report
in the following pages.



compliance

agriCultural
COMMOditiEs Our growing role in driving SUSTAInABly GROWn FOR
sustainable agriculture OUR COnSUMeRS

for Kraft foods, sustainability starts at the farm. Buying certified commodities is a powerful
sustainable agriculture promotes the long-term means of promoting sustainable farming,
viability of crops, the preservation of fertile supporting farmers and enabling consumers to
soil, the economic well-being of farmers and make informed choices. Our goal is to increase
farming communities, and the health of sustainable sourcing of agricultural commodities
ecosystems. as one of the world’s largest by 25 percent by 2015.
purchasers of cocoa, coffee, cashews and other
commodities, we can influence the future of We’re working to help bring more products to
those crops and the communities that grow market that have sustainably grown ingredients.
them. We’re partnering with other companies, in a different way, certification addresses the
governments and ngOs around the world to three pillars of sustainability—social, economic
increase our support of sustainable farming. and environment—by setting standards farmers
must meet and helping them to command a
the crops we buy often tell a story of family premium for their crops. the ultimate goals of
farming. Whether it’s coffee, cocoa, cashews these standards include decent wages, access
these Kraft foods brands have product
lines that carry fairtrade or rainforest or many of the other crops we buy, a large to health care and education for farming
alliance certification seals. portion of them come from developing communities; reductions in water pollution,
countries. and a variety of circumstances, soil erosion and excessive pesticide use; and
the Côte d’Or chocolate business
such as political unrest, poor soil conditions, more. smarter farming can lead to healthier
received the 2010 rainforest alliance
sustainable standard-setters award lack of infrastructure and more, contribute to farm communities and better quality crops.
for its strong commitment to improve the challenges faced by farmers. that’s why
the environment and support local we have supported farming communities and
communities. sustainable agriculture programs for years.



compliance

agriCultural in 2010, we continued to be the largest buyer • in ghana, we’ve quadrupled the volume of
COMMOditiEs
of coffee from Rainforest Alliance Certified cocoa sold under fairtrade terms, resulting
farms and the largest buyer of cocoa beans in £2.3 million ($3.7 million) in fairtrade
from certified Fairtrade or rainforest alliance social premiums. Communities have used
farms. here’s how that support is making the premiums to purchase mobile health
a difference: clinics, farm equipment, farm-skills training
and more.
• in 2010, our purchases of rainforest
• in the daloa region of Côte d’ivoire, one of
alliance Certified coffee helped support
the farm cooperatives we work with used a
more than 430,000 workers tending more
portion of its premium from selling rainforest
than 85,500 hectares (210,000 acres)
alliance Certified cocoa to build a small
in 12 countries in africa, Central america,
delICIOUS @ WORK health-care facility staffed by government-
south america and southeast asia.
assigned health professionals. for the first
Our Canadian confectionery team • We’re helping farmers through the Cocoa time, farmers and their families can find
created the Bicycle factory in 2009,
to rally Canadians to send much-
Partnership, the £45 million ($72 million), local treatment for ailments, such as malaria,
needed bicycles to the school kids in 10-year commitment to cocoa farmers in and mothers can deliver their babies close
our cocoa-growing communities in the dominican republic, ghana, india and to home.
ghana to help increase their access indonesia launched by our Cadbury team
to education. in 2008.
the program is based on the simple
notion that ”small purchases can make
a big difference for people in need.”
Each universal Product Code from
any participating item entered at
www.thebicyclefactory.ca turns into a
virtual bike part. for every 100 virtual
bike parts, one real bike gets sent
to ghana.
the campaign has delivered more
than 9,000 bikes in 120 communities.



compliance

agriCultural THe POWeR OF WORKInG WITH OTHeRS By joining these gates foundation initiatives,
COMMOditiEs
we hope to help break the cycle of poverty
another way we support sustainable agriculture
for 200,000 cocoa farmers and 150,000
is by taking part in industry programs that
cashew farmers. and the results are starting
delICIOUS @ WORK
boost development in commodity-producing
to materialize. in 2010, we purchased
communities. By collectively working with others,
Other examples of partnering: 1,000 metric tons (2.2 million pounds) of
we can make a greater impact.
cashews that were grown sustainably and
• in 2009, we joined the World
processed in sub-saharan africa.
economic Forum’s initiative called in early 2009, we joined industry, government
new Vision for Agriculture. the goal and nongovernmental partners in two Bill &
of the initiative is to define ways to CUlTIVATInG A MORe ReSPOnSIBle
provide food security for all in an
Melinda Gates Foundation initiatives that are
environmentally sustainable way investing $90 million over five years to advance AGRICUlTURAl SUPPly CHAIn
while generating economic growth. sustainable production of cocoa and cashews
Many crops we buy come from areas faced
• We are a founding member
in West africa.
with political issues or traditions that are not in
and financial supporter of the line with our sourcing standards. in order for us
4C Association. this coalition of • the World Cocoa Foundation manages the
producers, trade, industry and ngOs to source in a way that meets our standards, we
first initiative, called the Cocoa livelihoods
aims to help farmers lower costs, work with others to address such concerns as:
Program, and is providing $40 million in
improve quality and efficiency, and
gain access to markets and credit. cash and related support to increase the
COCOA lABOR ISSUeS Kraft foods is involved
incomes of small-scale cocoa farmers in
• We’ve also joined the World Cocoa in substantial efforts to address forced labor
Cameroon, Côte d’ivoire, ghana, liberia
foundation and USAId in creating and the worst forms of child labor in cocoa
a program called eCHOeS, which and nigeria.
farming. While we don’t own or control any
strengthens cocoa-growing
communities in Côte d’ivoire and
• deutsche Gesellschaft für Technische farms, we have worked since 2001 with
ghana by training young people and Zusammenarbeit (GTZ) GmbH manages the governments of the Côte d’ivoire, ghana
teachers in vocational agriculture. the second program, the African Cashew and the u.s., and our peer companies, to
through EChOEs, we’ve helped Initiative, which is providing about enhance education, support economic
train more than 5,200 students and $50 million in cash and other support development and promote responsible
more than 7,100 teachers.
to train producers in Benin, Burkina faso, labor practices.
for more examples, see nourishing Côte d’ivoire, ghana and Mozambique.
Our Agricultural Supply Chain.



compliance

agriCultural PAlM OIl And deFOReSTATIOn Palm oil is AnIMAl WelFARe We understand that there
COMMOditiEs
used in a large variety of products worldwide is concern about the welfare of animals raised
and demand is growing. that demand, for food. We expect our facilities and those of
combined with uncontrolled harvesting and our direct suppliers that handle live animals to
production practices that some producers meet all government regulations and industry
employ, is contributing to deforestation in standards on animal welfare.
the tropics.
in the u.s., we adhere to science-based
We support the goals and efforts of the standards developed by trade organizations like
Roundtable on Sustainable Palm Oil (RSPO) the American Meat Institute, national Turkey
delICIOUS @ WORK
and we buy from its members. Federation, United egg Producers and national
in france, we’re sourcing wheat in Chicken Council. direct suppliers must
a more integrated way to reduce the Our palm oil purchases amount to less than demonstrate compliance through annual
environmental impact of farming.
0.6 percent of worldwide production. in 2010, audits conducted by a third party. in the Eu,
We’re using local and sustainably we began buying GreenPalm certificates our suppliers have to comply with established
sourced wheat for LU biscuits. covering more than 25 percent of our palm oil animal welfare regulations as a condition of
nearly 700 farmers follow special purchases. greenPalm is an rsPO-endorsed exporting goods to these countries.
practices growing 8,000 hectares
certificate-trading program that provides
(20,000 acres) of wheat to limit
their environmental impact. farmers incentives to producers whose plantations the welfare of egg-laying hens is a concern
have reserved parts of their fields for conform to its criteria. We also purchased for some consumers and customers. this
bee-friendly flowers to help support segregated certified palm oil. using this year’s year in the u.s., we will purchase one million
one million bees—encouraging purchases as a guide, we expect to be able to eggs from cage-free facilities. in the Eu,
pollination and biodiversity for cover 100 percent of our purchases once the we are transitioning away from battery cage
future generations.
supply of certified palm oil accounts for about eggs in accordance with regulations banning
one-third of the world’s total supply. We expect the use of conventional cage systems by 2012.
our suppliers to reach this goal by 2015.


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