Kraft Foods Reformulates Hundreds of U.S. Products as Part of Voluntary Trans Fat Reduction Efforts; Company to meet FDA deadline for trans fat labeling

NORTHFIELD, Ill.--()--Dec. 20, 2005--Kraft Foods Inc. (NYSE:KFT), a global leader in branded foods and beverages, announced today that it has successfully completed its multi-year, voluntary trans fat reduction efforts in the U.S. In addition, the company said that it will meet the January 1, 2006 U.S. Food & Drug Administration (FDA) deadline for on-pack trans fat labeling. The new FDA rule does not require companies to reduce trans fat content. Kraft took the added steps of reducing or removing trans fat from its products, while making sure they retain their great taste. With nearly every reformulated product, not only did the company reduce trans fat content, but it also ensured that the combination of saturated fat plus trans fat did not increase compared to the original formulation.

With more than 100,000 people-hours invested by Kraft's research and development teams alone, the extensive and complex project resulted in the reformulation of a significant number of Kraft's U.S. products.

"As part of Kraft's broader health and wellness initiatives, we're continually working on ways to enhance the nutritional profiles of our products," noted Lance Friedmann, Senior Vice President, Global Health & Wellness and New Category Development. "With trans fat reformulation efforts, we've responded to consumers' concerns, while also delivering on their quality and taste expectations. A great example of having met this goal is our Triscuit cracker line; we've seen double-digit growth on Triscuit sales since its reformulation."

The broad, multi-disciplinary effort involved Kraft's Global Technology & Quality, Operations and Marketing teams.

"Reformulating a single product can be challenging on its own," said Jean Spence, Executive Vice President, Global Technology & Quality. "With this initiative, we were reformulating across our entire U.S. portfolio, with roughly 650 products needing new formulas or manufacturing solutions, or both. In some cases, we even had to develop proprietary blends of oils to help meet our goal of ensuring that the combined level of saturated fat plus trans fat did not increase as a result of the reformulation."

As a result, seven Kraft categories undertook significant reformulation efforts across their product lines, including: Cereal, Cookies, Crackers, Pizza, Desserts, Meals, and Oscar Mayer. Brands such as Kraft(R) Easy Mac(R), DiGiorno(TM) Thin Crispy Crust Pizza, original Oreo(R) cookies, Wheat Thins(R) crackers, and Jell-O(R) Pudding Snacks will now be labeled as containing 0g trans fat per serving.

With the completion of the reformulation efforts, fewer than 2.5% of the products in Kraft's portfolio covered by the FDA rule will be required to bear labels declaring the presence of trans fat. These include products where trans fat is naturally occurring, such as cheeses, products containing meats or cheeses (e.g. pizza, lunch combinations), and products where reformulation efforts would have negatively altered the taste and quality of the product.

Kraft's approach to trans fat reformulation is global, with significant efforts under way in markets around the world.

About Kraft

Further information on Kraft's broad-based health and wellness initiatives can be found on Kraft's corporate website (http://kraft.com/responsibility/home.aspx).

Kraft Foods markets many of the world's leading food brands, including Kraft cheese, Maxwell House and Jacobs coffees, Nabisco cookies and crackers, Oscar Mayer meats, Philadelphia cream cheese, Post cereals and Milka chocolates, in more than 155 countries.

Contacts

Kraft Foods
Elisabeth Wenner, 847-646-4271
elisabeth.wenner@Kraft.com

Contacts

Kraft Foods
Elisabeth Wenner, 847-646-4271
elisabeth.wenner@Kraft.com