Kraft reported higher third-quarter sales and
earnings Thursday, citing price hikes and strong sales of new products.
Sales grew 11.5% to $13.23 billion, and net earnings grew 22% to $927 million, or 52 cents per share. Income from
operations grew 12% to $1.7 billion, or 58 cents per share. The Velveeta Cheesy Skillets meals were big, as were Lunchables, which posted record sales. Kraft said Mio's first year of sales is
expected to surpass the $100 million benchmark.
Kraft CEO Irene Rosenfeld said the company passed through significant price increases in response to soaring ingredient costs. "Consumers are
responding favorably to our investments in new products and better, more effective advertising," she said. "This has been a powerful combination," and allowed the company to pass higher costs on to
consumers.
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