MANILA: Kraft Foods is setting up a marketing and distribution
sales force in the Philippines for the Nabisco brands it acquired.
It is understood that Kraft has awarded FCB the Philippine portion of
the Nabisco business. It is also understood that Kraft decided against
calling for a pitch for the Nabisco brands. Television advertising is
planned for Nabisco's Chips ! Ahoy and Ritz brands for mid year.
The new arrangement will give Kraft a two-agency system, with J. Walter
Thompson retaining the Asia-Pacific Kraft business, including the
USdollars 4 million Philippine account.
The move to expand Nabisco's marketing in the lucrative Philippine
market is aimed at dominating the local snacks and biscuits segment,
which is led by domestic food firms such as M.Y. San and Rebisco.
The Philippines, where Kraft brands like Tang's and Cheez Whiz are huge
sellers, is one of Kraft's biggest market. It contributes 50 per cent of
the American giant's Southeast Asian revenues. Philippine revenues are
said to be bigger than Kraft's Latin American and Central and Eastern
European markets.
The Philip Morris-owned Kraft Foods acquired Nabisco Holdings
Corporation for USdollars 15.2 billion, making it the biggest food
manufacturer in the US.
Kraft Foods Philippines president and general manager Ramiro M. Cruz
expects the setting up of the sales and marketing force and the
integration of the Kraft and Nabisco businesses will push Philippine
sales to dollars 84 million, 45 per cent higher than last year's dollars
60 million.
For Nabisco alone, Kraft expects sales to reach dollars 15 million this
year.
"The biggest chunk of the company's investment for the year will go to
its sales and marketing operations," Cruz added.
Prior to the acquisition, Nabisco's sales and distribution was handled
by Alaska Philippines.
In the Philippines, the merger is expected to help Kraft expand in the
biscuits, snacks and impulse food categories with Nabisco brands such as
Oreo cookies, Chips Ahoy! and Ritz crackers.
