• by David Goetzl  @dgoetzl, February 16, 2010

A significant increase in fourth-quarter ad spending has positioned Kraft for solid growth this year, its CEO said Tuesday. The increase was enough to bump Kraft's total spending for 2009 up slightly.

Global ad spending came in at an estimated $2.9 billion, according to Kraft figures, which marked 7.2% of net revenues. In 2008, that percentage was 6.7%.

Kraft CEO Irene Rosenfeld also indicated that the company may have received more for its investment last year as ad rates dropped "considerably." By reducing emphasis on the "unprofitable" coffee and snack nuts businesses, Rosenfeld said Kraft was able to spend more on marketing in the October-December period.

"This will clearly pay dividends in 2010," she said on an earnings call.

Among the brands generating increased spending in the U.S. in the fourth quarter were Kraft Singles, Philadelphia cream cheese and Velveeta, which led to sales increases. The company also said Capri Sun, Crystal Light and Oscar Meyer lines performed well.

Still, North American organic revenues fell 2.7% in the fourth quarter, although Rosenfeld attributed that to decreased pricing.

Overall global net revenues were up 3% to $11 billion in 4Q -- but down 3.7% for the year to $40.4 billion.

Kraft recently took control of Cadbury and Kraft and has identified annual potential savings of $125 million from efficiencies and economies of scale in the marketing and selling arena. The new Kraft will increase marketing, she said.

Rosenfeld said with the addition of Cadbury, which owns the Trident and Halls brands, Kraft should be able to produce 3% to 5% organic revenue growth in North America going forward.

"I'm confident that these beloved (Cadbury) brands will thrive with focused incremental marketing and merchandising investments that we can now provide," she said.

Hershey's has rights to sell the Cadbury chocolate brands in the U.S.