Kraft Foods Responsibility Report by ghkgkyyt


a more
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
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                                           a 4 b

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
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                                   a 5 b

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
                                            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

    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
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                                                a 7 b

   “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,
    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
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                           a 8 b

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

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
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                        a 9 b

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

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.

hEalth and WEll-BEing: Eat dEliCiOus, livE WEll                                                                                             Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                         a 10 b

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

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.

hEalth and WEll-BEing: Eat dEliCiOus, livE WEll                                                                                              Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                         a 11 b

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

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.

hEalth and WEll-BEing: Eat dEliCiOus, livE WEll                                                                                             Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                        a 12 b

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

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.

hEalth and WEll-BEing: Eat dEliCiOus, livE WEll                                                                                             Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                                           a 13 b

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

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.

hEalth and WEll-BEing: Eat dEliCiOus, livE WEll                                                                                                                 Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                         a 14 b

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

 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.

hEalth and WEll-BEing: Eat dEliCiOus, livE WEll                                                                                              Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                            a 15 b

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

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 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                       more choices to meet their needs in health           to successfully combat hunger and related
                                               and well-being.                                      health issues themselves.

hEalth and WEll-BEing: Eat dEliCiOus, livE WEll                                                                                                  Index
 CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                           a 16 b

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

  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.
                                                 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.

 hEalth and WEll-BEing: Eat dEliCiOus, livE WEll                                                                                               Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                          a 17 b

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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.

hEalth and WEll-BEing: Eat dEliCiOus, livE WEll                                                                                               Index
 CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                            a 18 b

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  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                                 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.

 hEalth and WEll-BEing: Eat dEliCiOus, livE WEll                                                                                                Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                            a 19 b

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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.

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

                                                                                      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
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                          s i m p rove
              ti   nuou                  me
                                                               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

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                                                                            Index
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                                                  UndeRSTAndInG OUR IMPACT                            We also use environmental management
                                                                                                      systems in our manufacturing facilities
                                                  the more we can see and understand the

                                                                                                      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.

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                                    Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                            a 23 b

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         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.

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                                  Index
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         agriCultural                           in 2010, we continued to be the largest buyer        •	 in ghana, we’ve quadrupled the volume of
                                                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 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.

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                                    Index
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         agriCultural                            THe POWeR OF WORKInG WITH OTHeRS                  By joining these gates foundation initiatives,
                                                                                                   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
                                                 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.

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                                   Index
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         agriCultural                          PAlM OIl And deFOReSTATIOn Palm oil is              AnIMAl WelFARe We understand that there
                                               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
                                               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.

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                                  Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                          a 27 b

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                                              Smarter packaging                                  post-consumer recycled material in a given
                                                                                                 package design, along with the amount of
                                              Packaging is one of the first and last             energy and carbon dioxide emissions required
                                              experiences consumers have with our products.      to create the package. the Eco-Calculator also
                                              that’s why we’ve taken a comprehensive             tells packaging designers how efficiently they’re
                                              approach to packaging—one that cuts waste,         using materials and how well their designs will
                                              conserves natural resources and gives users        fit our products’ physical dimensions. the tool
                                              a more satisfying experience.                      is used along with other business practices,
                                                                                                 like economic assessments and ability to
                                              Between 2005 and 2010, we cut nearly               manufacture, in deciding a final design.
                                              100,000 metric tons (200 million pounds) of
                                              packaging from our supply chain. We’re working Examples of other recent packaging reductions,
  delICIOUS @ WORK                            to eliminate another 50,000 metric tons         based on annual totals, include:
  Kenco coffee refill pouch                   (100 million pounds) by 2015. reductions like
  97 percent less packaging                   the 20 percent we cut from packaging for LU     •	 u.S.: instant Maxwell House coffee jar
  compared to the glass jar, formerly         Le Petit Ecolier biscuits in france in 2010 are
  the product’s sole container.                                                                  material change—6,500 metric tons
                                              helping us on our way.                             (14.4 million pounds).
  Oscar Mayer Deli Creations
  30 percent less paperboard;                 Key to our reduction in packaging is our           •	 u.S.: Planters peanuts shipper reduction—
  eliminating 544 metric tons                                                                       1,225 metric tons (2.7 million pounds).
                                              Packaging Eco-Calculator™. it’s a tool we
  (1.2 million pounds) of packaging.
                                              invented to help our packaging developers          •	 Central and eastern europe, Middle east and
  Milka chocolate bars                        create more efficient, sustainable solutions          Africa: Tang powdered beverage can material
  60 percent less packaging weight            based on data from the u.s. Environmental
  from fewer layers; saving 2,600                                                                   change—500 metric tons (1.1 million pounds).
                                              Protection agency, the u.s. department of
  metric tons (5.7 million pounds) in                                                            •	 eu: Lacta chocolate tablets film layer
  Europe and rolling out the process          Energy and packaging industry groups. the
  in latin america.                           Eco-Calculator figures the percentage of              reduction—145 metric tons (320,000 pounds).

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                               Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                                   a 28 b

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

        PaCKaging                          Besides improving the design in some of our        in 2008 and 2009, we were the official food
                                           packaging, we’re also using more sustainable       sponsor of Recyclebank®, a company that
                                           materials. in north america, the majority of       rewards consumers for recycling. Currently,
                                           people can recycle more than 70 percent            our Back to Nature brand is participating in
                                           (by weight) of our packaging. Most is made         the Recyclebank Partners in Purpose campaign,
                                           from paper, a renewable material.                  which aims to educate consumers on how to
                                                                                              make smarter, greener shopping choices.
                                           for consumers, governments and trading             We’re also collaborating with industry packaging
                                           partners, having a universally accepted            organizations in australia, Europe, latin america
                                           definition for sustainable packaging—along         and elsewhere to boost recycling rates.
                                           with metrics to measure progress—is important.
                                           that’s why we’re co-leading The Consumer
                                           Goods Forum’s Global Packaging Project with           global Packaging reduction
                                           the aim of arriving at a common definition of         Weight (Mt) Eliminated since 2005
                                           sustainable packaging and consistent metrics.
                                                                                                                                              100,000 Mt
                                           ReCyClInG Packaging has little benefit if
                                           consumers don’t recycle. to increase recycling
                                           rates, we’re using more recycled content in
                                           much of our packaging and partnering with
                                           others on education campaigns.                           2005   2006   2007   2008   2009   2010

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                                         Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                        a 29 b

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                                             Reducing energy to help                          in addition to reducing energy
                                             combat climate change                            consumption, we’re also eliminating
                                                                                              our use of chlorofluorocarbons (CfCs)
                                             in light of concerns over climate change,        and hydrofluorocarbons (hfCs), which
                                             we’re looking across our supply chain at         have been linked to global warming and
                                             what’s directly and indirectly under our         deterioration of the ozone. By the end of
                                             control. to address our direct impacts, we       2010, we met our goal to eliminate CfCs.
                                             monitor manufacturing and our transportation     and, we’re making great progress toward
                                             fleet. for our indirect impacts, we focus on     our goal to eliminate hfCs by 2020.
                                             our agricultural commodity purchases
                                             and transportation operations. applying a        in 2010, we joined our fellow board members
                                             pragmatic approach allows us to concentrate      in supporting The Consumer Goods Forum’s
                                             on areas we need to understand better and        resolutions to fight climate change by
  delICIOUS @ WORK                           where we can be most effective.                  addressing deforestation and promoting
  Our manufacturing plants account                                                            sustainable refrigeration. We resolved to do our
  for 92 percent of our electrical           from 2005 to 2010, we reduced our energy         part in achieving the forum’s goal of assisting
  consumption. By reducing electricity       use by 16 percent and our energy-related         countries to achieve net-zero deforestation.
  use, we save fossil fuel burned to         carbon dioxide emissions by 18 percent. By
  generate power and the resulting
  greenhouse gases.
                                             2015, we’re aiming to reduce our energy use      in december 2010, we signed the Cancun
                                             and energy-related carbon dioxide emissions      Communiqué on Climate Change, which
                                             by an additional 15 percent each. We’re          builds on the progress of the Copenhagen
                                             making progress by changing our operations,      Communiqué, that we joined in 2009. like its
                                             improving facilities and training employees to   predecessor, the Cancun Communiqué aligns
                                             modify their behavior. We’re also investing      directly with our view that the united nations
                                             in new technologies for lighting, heating,       climate framework agreement makes sense
                                             refrigeration, processing and packaging.         for society generally and will ultimately benefit
                                                                                              our business.

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                              Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                                            a 30 b

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         EnErgY                                  FIndInG InnOVATIVe SOlUTIOnS                         We invest in energy savings in our office
                                                 FOR OUR eneRGy needS                                 buildings and distribution centers, too. in
                                                                                                      2009, our corporate headquarters campus in
                                                 One way we’re reducing the percentage of             northfield, illinois, u.s., earned the energy Star
                                                 fossil fuels we consume is by tapping into           rating from the u.s. Environmental Protection
                                                 alternate energy sources. sometimes a viable         agency. Elsewhere, several of our buildings in
                                                 source exists right in our factories. for example,   australia, Brazil, the Philippines and switzerland
                                                 at our lowville, new York, u.s., plant, we’ve        also have strong efficiency records.
                                                 discovered that by treating whey, a natural
                                                 by-product of cheese-making, in an anaerobic
                                                 “digester,” we can produce enough methane              global Manufacturing Energy Consumption
  delICIOUS @ WORK                               to replace about 30 percent of the natural             (gj/ton) and CO2 Emissions (kg/ton)
                                                 gas the plant uses annually. reclaiming whey           % Change since 2005
  Known as the lightcube, our
                                                 eliminates the need for disposal, saving diesel
  building in Zurich is one of our most
  energy-efficient facilities. it uses less      fuel and carbon dioxide emissions. it also                                                           -16%
  energy—50 percent for lighting and             results in cleaner wastewater. We’re exploring
  60 percent for ventilation—than                ways to convert whey to energy across our
  comparably sized facilities.                   dairy-products network.
                                                                                                            2005   2006   2007   2008   2009   2010

                                                 at some of our plants, we’re exploring different
                                                                                                           Global manufacturing energy consumption
                                                 ways to save energy generated from fossil fuels
                                                                                                           CO2 emissions
                                                 and implement innovative solutions. some
                                                 factories are using coffee grounds to generate
                                                 energy, while our plant in induri, india, uses
                                                 bagasse, the waste from the local sugar
                                                 industry. We’re reclaiming oven heat and using
                                                 solar energy to heat water. We’re experimenting
                                                 with wind turbines on factory roofs and
                                                 improving control of our utilities. and we’re
                                                 simply remembering to turn off the lights.

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                                                 Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                                        a 31 b

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                                               Watching our water use                             •	 Our Puebla, Mexico, plant treats its
                                                                                                     wastewater on site and supplies the local
                                               a growing global population is making more            authorities with clean water—free of charge—
                                               demands on the planet’s water supply, so              for irrigating the city’s green spaces.
                                               conservation is needed around the world.
                                                                                                  •	 We treat the wastewater from our Chirk, uK,
                                               We’ve reduced water consumption in our                plant on site and reuse it in boilers, cooling
                                               manufacturing facilities by 30 percent since          towers and other ways that do not bring the
                                               2005. With a goal to reduce water use an              water into contact with food. as a result,
                                               additional 15 percent by 2015, we’re reusing it,      we’ve reduced freshwater consumption at
                                               improving processes, maintaining equipment            Chirk by 20 percent.
                                               and educating employees.                           •	 at our Cieszyn, Poland, facility, we’ve reduced
                                                                                                     water use by 39 percent since 2005 through
  delICIOUS @ WORK                             We’re working with global experts to estimate         continuous improvement efforts.
                                               the amount of water used in our factories, as
  looking to reduce water use at               well as the “water footprint” of the ingredients   •	 We reduced water at our hemelingen,
  our Vegemite spread plant in Port                                                                  germany, plant in 2009 by 19 percent
                                               and packaging materials we purchase and the
  Melbourne, australia, the team                                                                     compared with the previous year through
  consolidated manufacturing                   water used in our factories.
  processes and made innovative
                                                                                                     improvements to the cleaning process.
  changes. the results:                        Other examples of how we’re conserving
  •	 58 percent reduction in
                                               and reusing water around the world:
     water needs.                                                                                    global Manufacturing Water
                                               •	 at our ringwood plant in Melbourne,                Consumption (m3/ton)
  •	 52 percent decrease in energy                                                                   % Change since 2005
                                                  australia, we’ve installed a rainwater
                                                  harvesting system and use the captured
  •	 More than 65 percent elimination             rainwater in our boilers and cooling towers.
     of wastewater discharge.                     When we have more than we can use, we                                                           -30%

  •	 recovered and treated wastewater             supply a neighboring school with water to
     streams for use in building local            irrigate its playing field.
     roads, saving about one million                                                                    2005   2006   2007   2008   2009   2010
     liters (264,200 gallons) of potable
     water per month.

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                                             Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                                         a 32 b

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                                               Redefining waste
                                                                                                      global Manufacturing Waste
                                               We’ve reduced net waste from our                       generation (kg/ton)
                                               manufacturing plants by 42 percent from                % Change since 2005

  delICIOUS @ WORK                             2005 levels. By 2015, our goal is to reduce
                                               waste by an additional 15 percent. Our
  We have 26 plants in nine
  countries that have hit zero
                                               strategy is simple: generate less waste and                                                         -42%

  waste-to-landfill status.                    find new uses for the waste we do produce.

  Austria            norway                    solid waste generated from manufacturing                  2005   2006   2007   2008   2009   2010

  Bludenz            Oslo                      accounts for more than 99 percent of our
                     Sweden                    total waste. We recycle or reuse about
  Belgium            gavle                     90 percent of our manufacturing waste.
  halle                                        in some cases, we’re using manufacturing
  herentals          Switzerland
                     Bern                      by-products as energy sources.
  Canada (Ontario)
  East York        United States               in 2007, we launched a pilot program with
                   Bethlehem, Pa
  Mississauga                                  Sonoco, a global packaging and recycling
  scarborough      fair lawn, nJ
                   new ulm, Mn                 company, to substantially reduce waste in
  France           Oakville, Ca                our plants. Our objective: to send zero waste
  Cestas           Philadelphia, Pa            to landfills.
  laverune         suffolk, va


sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                                              Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                         a 33 b

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        WastE                               TURnInG TRASH InTO USeFUl PROdUCTS                    We also send post-manufacturing waste to
                                            seventy percent of our north american                 terraCycle. that post-manufacturing waste,
                                            packaging is recyclable. for the remaining            combined with what the brigades collect,
                                            30 percent that can’t be recycled, we’re              has enabled us to keep nearly 3.7 metric tons
                                            working to find alternatives to address its           (8,100 pounds) of waste from 800 million
                                            end of life. One alternative is to use it a second    packages from going to landfills.
                                            time, or upcycle. in 2007, we partnered with
                                            TerraCycle™, a company that collects post-
                                            consumer and post-industrial packaging and
                                            turns the waste into merchandise.

                                            the system uses collection brigades that are
                                            typically run out of community centers, schools
                                            and youth groups. Kraft foods compensates
                                            the collection teams for each package they
                                            collect and send in.

                                            today, Kraft foods is the largest sponsor of
  these Kraft foods brands participate
                                            terraCycle, supporting the organization in
  in the terraCycle™ program.               argentina, Brazil, Canada, ireland, Mexico,
                                            sweden, the uK and the u.s. with more
                                            than 85,000 brigades and an estimated
                                            12 million people collecting waste worldwide.

                                            as a result of their efforts, brigades received
                                            approximately $1.6 million in charitable
                                            donations in 2010. the organizations use the
                                            money they receive to buy equipment and
                                            supplies or donate it to their charities of choice.

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                              Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                           a 34 b

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         distriButiOn                         Moving products more efficiently                    another solution is to use alternative modes of
                                                                                                  transportation. By shipping wheat to our toledo,
                                              improving our global transportation and             Ohio, u.s., facility by waterway rather than road,
                                              distribution network so that we move products       we’ve replaced 10,000 truck shipments that
                                              and raw materials more efficiently saves truck      have cut nearly 2,000 metric tons (4 million
                                              fuel, cuts carbon dioxide emissions and             pounds) of emissions. in Brazil, in just six
                                              reduces traffic. since 2005, improved internal      months of shipping by water, we cut 125 truck
                                              processes, along with our collaborations with       shipments—390,000 kilometers (242,000
                                              customers and suppliers, have eliminated            miles) and 300 metric tons (more than
                                              approximately 97 million kilometers (about          600,000 pounds) of carbon dioxide emissions.
                                              60 million road miles). By 2015, our goal
  delICIOUS @ WORK                            is to eliminate another 80 million kilometers       the right technology makes a difference.
  as members of the u.s.                      (50 million road miles) from our global             We’re using the Oracle® transportation
  Environmental Protection agency’s           transportation network.                             Management system to optimize truck
  smartWaysM transport Partnership,                                                               movements and reduce “empty miles” in our
  we’ve reduced truck idling, lowered                                                             u.s. operations. similarly, the autovlB software
                                              sometimes the answer is literally right under
  our corporate speed limit and                                                                   from Transportation/Warehouse Optimization
  equipped our trucks with fuel-saving        our feet, as in our underground refrigerated-
                                              storage facility built into the natural limestone   enables us to improve payload by configuring
  technology. We’ve also adopted
  other strategies that enable our            caves at springfield, Missouri, u.s. not only       loads with a mixture of heavy and light products,
  trucking operations and those of our        do the naturally cool caves require 65 percent      eliminating more than 9,000 truck shipments
  freight carriers to use less fuel and       less energy than conventional storage facilities,   and 9.6 million kilometers (6 million miles).
  emit fewer greenhouse gases.
                                              their large size and central location enable us
  in 2009, we were one of just five           to consolidate inventory and transport our
  consumer products companies to              products to our customers more efficiently.
  earn the smartWay Excellence award.         that’s an annual savings of 680,000 liters
                                              (180,000 gallons) of fuel, 1,800 metric tons
                                              (4 million pounds) of carbon dioxide emissions
                                              and more than 1.6 million kilometers (one million
                                              miles) of truck travel.

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                                 Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                     a 35 b

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                                           BeInG MORe TRAnSPARenT                            companies that demonstrate good internal
                                           In OUR eFFORTS                                    data management practices for understanding
                                                                                             greenhouse gas emissions, including
                                           it’s important to do the right things for current energy use.
                                           and future generations. it’s equally important to
                                           show what we’re doing. that’s why we participate in 2010 we were listed on the dow Jones
                                           in internationally recognized indices.            Sustainability World Index for the fifth straight
                                                                                             year, the dow Jones Sustainability north
                                           as an example, we’ve been a part of the Carbon America Index for the sixth year and listed
                                           disclosure Project (CdP) since 2005. from the as a Cii leader by Maplecroft Climate
                                           beginning of our participation, we have formally Innovation Indexes (CII), placing us in the
                                           reported scope 1 and scope 2 emissions. in        100 top-performing companies in Maplecroft’s
                                           2009, we began reporting on a portion of          benchmarking of the largest 350 u.s. companies.
                                           scope 3. Cadbury, which we acquired in 2010,
                                           had also reported to the CdP since 2005,
                                           appearing regularly in its leadership index.      Focusing on sustainability
                                           in 2010, we submitted a combined report to        We all have a role to play in caring for people,
                                           the CdP that included emission data from          land and resources that touch our daily lives. We
                                           both legacy Cadbury and Kraft foods. Our          can’t do everything. But we can work to make a
                                           carbon-emissions profile is available on the      difference in the areas where we’re big and that
                                           CdP website.                                      are big to us. and that’s why we’ve taken a
                                                                                             strategic approach to our sustainability efforts.
                                           in 2010, we were recognized for our efforts
                                           to reduce energy consumption and carbon           Our accomplishments to date are increasing
                                           emissions in two important ways. first, the       sustainable sourcing of agricultural commodities,
                                           Carbon disclosure Project listed us in its 2010   cutting packaging materials, reducing energy
                                           Carbon disclosure leadership index for the        and water use, finding new productive uses for
                                           first time, ranking us among the top-scoring      our waste and smarter distribution of our
                                           10 percent of global 500 and s&P 500              products. Every step, no matter the size, is a
                                           companies that report emissions to the CdP.       step in the right direction. Can a company do
                                           We’re the only u.s.-based food company to         well by doing good? We say yes!
                                           be listed on the global index, which recognizes

sustainaBilitY: nOW and fOr futurE gEnEratiOns                                                                                           Index
 CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                     a 36 b

  health and well-being           sustainability                fOOd safEtY and QualitY   Workplace and culture      governance and

 FOOD SAFety AnD QuALity:                                                                     Providing food and beverage choices that are
                                                                                              safe is paramount to our success. it’s the core

 BEttEr PraCtiCEs                                                                             of our heritage and an essential part of our
                                                                                              culture. Maintaining trust means offering quality
                                                                                              products that people can rely on and feel good

 dElivEr thE BEst
                                                                                              about serving to their family and friends.

                                                                                              Setting and ensuring others
 rEsults                                                                                      follow high standards
                                                                                              We employ a comprehensive, quality chain
                                                                                              management system to ensure that our food
                                                                                              is safe. it’s based on ISO 9001:2000, an
                                                                                              internationally recognized family of quality
                                                                                              management standards. in addition, we
                                                                                              supplement the isO standards with safety and
                                                                                              quality standards developed specifically for our
                                                                                              business. We also work with governments and
                                                                                              industry partners around the world to share
                                                                                              learnings because we know that all food safety
                                                                                              issues, even when they are not ours, can shake
                                                                                              consumer trust.
“Make food that is safe to eat.”
 Kraft foods Code of Conduct, rule 1                                                          for example, several years ago, we announced
                                                                                              a new ingredient technology that helped inhibit
                                                                                              the growth of Listeria in cooked meats. to
                                                                                              expedite industry knowledge and use of this
                                                                                              food safety innovation, we shared the technology
                                                                                              with the meat industry and published the
                                                                                              information to make it widely available.

 fOOd safEtY and QualitY: BEttEr PraCtiCEs dElivEr thE BEst rEsults                                                                       Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                                  a 37 b

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                                               similarly, in 2010, Kraft foods led an industrywide   will visit the site. Otherwise, we may work with
  delICIOUS @ WORK                             initiative to create and publish guidance for the     third-party auditors. in all cases, it’s critical that
  driven by our philosophy of                  safe production of nuts and made it available to      the auditors are properly trained, managed and
  continuous improvement, we                   nut suppliers and producers.                          adhere to a common set of criteria.
  regularly look at ways we can
  improve our supply chain to                  Our quality management system helps                   suppliers that fall short of our standards must
  strengthen food safety.                      employees, suppliers and distributors around the      take prompt, verified corrective action. if they
  recently, we began a program                 world understand our standards and expectations.      don’t, we stop doing business with them until
  to periodically screen select raw            We offer approximately 70 employee education          they raise their standards to meet our
  materials for potential chemical             programs, covering topics from sanitation to          requirements.
  contaminants. We do this across the          allergen control to packaging design.
  supply chain worldwide. ingredient
                                                                                                     Equally as important as audits are our tools
  samples are tested on a scheduled
  basis and analyzed by a Kraft foods-         as a global leader in food safety, we have            and programs for helping suppliers improve
  approved lab. suppliers cannot ship          well-defined safety and quality expectations          their food safety and quality systems. We hold
  the ingredients to our facilities until      for our suppliers worldwide and, before we use        “lessons-learned” sessions, offer food safety
  test results confirm that they meet          ingredients or raw materials, we have an audit        and quality forums, and provide on-site quality
  our specifications.                          conducted of their facilities to make sure they       consultations.
                                               meet our supplier Quality Expectations.
                                                                                                     Over the last two years, we’ve hosted numerous
                                               these suppliers are audited every one to three        supplier Quality and food safety forums covering
                                               years thereafter by Kraft foods or third-party        asia, Central and Eastern Europe, European
                                               auditors, based on risk. if a supplier handles        union, Middle East and africa, and north
                                               food at a higher risk for contamination, or if        america. We plan to continue these sessions.
                                               quality control is more challenging, our staff

fOOd safEtY and QualitY: BEttEr PraCtiCEs dElivEr thE BEst rEsults                                                                                    Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                             a 38 b

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                                                Taking action when needed                          Weighing the use of genetically
                                                despite our vigilance, threats to safety and       modified ingredients
                                                quality may arise. When something goes wrong,      We believe genetically modified ingredients
                                                we respond quickly. Our special situations         can play a role in food production. We also know
  delICIOUS @ WORK                              Management teams—senior-level managers             consumers worldwide have different points of
                                                from across the company who have experience        view about genetically modified ingredients. for
  We’ve helped build better food
                                                in handling these types of situations—             that reason, we review their opinions continually.
  production infrastructure in
  Kyrgyzstan and developed products             take immediate steps to protect consumers          in 2010, our position did not change.
  for Benin. We’ve expanded the                 when there is a food safety issue. We have an
  offerings at a vietnam cooking                early-alert system and processes to fast-track     When we choose to use genetically modified
  school for low-income consumers,              information to our internal quality and consumer   ingredients in our products, we do so based on
  helped to improve and extend safe             managers, as well as our special situations        a number of factors, including:
  distribution in vanuatu, and helped
                                                Management teams. through training,
  an Ecuadorian charity raise money
  by selling artisan chocolates.                employees in our manufacturing plants know         •	 fact-based scientific consensus about safety.
                                                exactly what steps to take when issues arise.
  since 2001, we’ve sent more than                                                                 •	 Consumer acceptance.
  175 Kraft foods scientists, engineers
  and other experts on 60 “missions”            Alerting consumers to allergens                    •	 local regulatory approval for use.
  with the united nations volunteers
                                                some of our consumers have food allergies          •	 Our own strict safety and quality criteria.
  programme. Our employees shared
  their expertise with nonprofits and           that can be quite serious. We address allergen
  small businesses focused on                   concerns at critical points throughout our         We follow all local regulatory requirements
  sustainable agriculture, food production      production and our supply chain. We account        regarding the use and labeling of genetically
  and community development.                    for the possible sources of major food allergens   modified ingredients. We also support                                   and identify them in common terms on               appropriate regulation of genetically modified
                                                our labels.                                        foods and ingredients to ensure the safety and
                                                                                                   integrity of the food supply and the protection
                                                                                                   of the environment.

fOOd safEtY and QualitY: BEttEr PraCtiCEs dElivEr thE BEst rEsults                                                                                  Index
CrEating a MOrE dEliCiOus WOrld | Our 2010 rEPOrt                                                                                               a 39 b

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                                              We have no safety concerns with the genetically        Meeting expectations every
  delICIOUS @ WORK                            modified ingredients currently on the market.          step of the way
  We believe it’s important to listen         this is based on conclusions reached by a
  and learn from our consumers. We            majority of scientists and regulatory organizations,   People, rightly, expect safe food. By adhering
  start by providing consumers with a         including the Food and Agriculture Organization        to strict standards, acting swiftly when threats to
  variety of channels to reach us:            of the United nations, the U.S. national               safety arise and communicating with consumers
  •	 Contact points, including 18 major       Academy of Sciences and the World Health               effectively, we maintain and strengthen our
     global contact centers, in all           Organization.                                          reputation for consistently producing delicious
     countries where our products                                                                    foods people can trust.
     are sold.                                though scientists have reached consensus,
  •	 Contact details on all Kraft foods       consumers have not. for example, in the u.s.,
     websites through frequently asked        most consumers are not concerned about
     Questions (faQs) and Contact us.         genetically modified foods. so we use them
  •	 social media, with nearly                in most of our products there. But in Europe,
     600 million fans of our various          where many people don’t want genetically
     facebook pages with more than            modified ingredients, we don’t use them.
     15 million twitter followers.            in countries where we don’t use genetically
                                              modified ingredients, our suppliers must
  then, to help us respond better to          provide documentation on the origin and
  consumer needs, our information
                                              preservation of all ingredients.
  analysts provide more than 1,000
  monthly and quarterly analyses of
  consumer input to all brands and
  across multiple functions in Europe,
  latin america and north america.

fOOd safEtY and QualitY: BEttEr PraCtiCEs dElivEr thE BEst rEsults                                                                                 Index
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  health and well-being          sustainability             food SAfETY And QuAliTY   WOrKPlaCE and CulturE       governance and

 WOrKpLACe AnD CuLture:                                                                   they invent new flavors. Make and sell our
                                                                                          delicious products. Manage our company.

 BECOMing                                                                                 and much more. Every day, our success
                                                                                          depends on more than 125,000 capable,
                                                                                          dedicated and diverse Kraft foods employees

                                                                                          around the world. treating them well and
                                                                                          providing a workplace that is safe, rewarding
                                                                                          and inclusive is our proven recipe for keeping

 drivEn, valuEs-lEd
                                                                                          great people and inspiring them to do
                                                                                          good things.

                                                                                          Starting with safety
                                                                                          We work hard to keep all of our employees
                                                                                          safe and strive for zero accidents in the
                                                                                          workplace. We aim to get there by addressing
                                                                                          the causes of injuries and by setting clear
                                                                                          expectations that employees must follow all
                                                                                          safety laws and guidelines, operate equipment
                                                                                          properly and never use alcohol or illegal drugs
                                                                                          in the workplace.

“Treat people fairly.”                                                                    By doing this, we’ve made good progress.
                                                                                          While this 2010 report includes safety data on
 Kraft foods Code of Conduct, rule 3
                                                                                          only our manufacturing facilities, by 2012, we’ll
                                                                                          track and provide this data for all employees.

 WOrKPlaCE and CulturE: BECOMing PErfOrManCE-drivEn, valuEs-lEd                                                                        Index
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                                           since 2005, we have reduced our lost-time            Our safety Policy sums up our approach well:
                                           accident rate by 32 percent in our manufacturing
                                           facilities. in 2010, 76 plants, including our        •	 safety and health improvements are both
                                           Cadbury facilities, completed a full year of            an individual and team responsibility.
                                           operation without a reported lost-time accident.
                                                                                                •	 Each of us must be dedicated to conducting
                                           that covers approximately one-third of our
                                                                                                   all activities with the highest concern for
                                           operating plants worldwide. Each facility
                                                                                                   employee safety and health.
                                           received a plaque for helping fulfill our vision
                                           of being a “safety perfect” organization. facility   •	 Each of us should participate in a local safety
                                           managers made the presentations at plant-wide           program and actively seek to achieve an
                                           celebrations, recognizing all employees for their       accident/injury-free work environment.
                                           role in this achievement.
                                                                                                to achieve these commitments, we created
                                           despite our progress, we clearly have more           a new worldwide safety and environment
                                           work to do. tragically, there were four employee     management system in 2010. this system
                                           fatalities in 2010. two employees in Philadelphia,   brings together the best practices from legacy
                                           Pennsylvania, u.s., died due to workplace            Cadbury and Kraft foods. Our plan is to roll
                                           violence; an employee in Chicago, illinois, u.s.,    out this system across the company.
                                           died on entering a palletizer; and an employee
                                           in india died due to a fall. three members of
                                           the public—one each in the dominican                   lost-time accident reduction
                                           republic, uK and u.s.—also died as a result            since 2005*
                                           of traffic accidents while our employees were
                                           carrying out their duties.
                                           We thoroughly investigated all events to                                                                -32%

                                           understand the root causes and to see if
                                           we needed to revise our safety policies                    2005    2006   2007    2008   2009    2010

                                           and processes. this focus on continuous
                                                                                                    *this chart shows the number of lost-time accidents per
                                           improvement is key to achieving our goal                  100 full-time equivalent Kraft foods employees per year.
                                           to keep all employees safe.

WOrKPlaCE and CulturE: BECOMing PErfOrManCE-drivEn, valuEs-lEd                                                                                                  Index
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                                           Mixing in wellness                                     We are also an active member of the World
                                                                                                  economic Forum’s Workplace Wellness Alliance.
                                           We encourage and support our employees                 the alliance brings together 39 multinational
                                           in having healthier lifestyles. We offer various       companies from around the world that are
                                           health and well-being tools and resources              committed to advancing wellness in the
                                           in many facilities around the world—and our            workplace by improving the overall health
                                           goal is to expand these efforts each year.             and well-being of their global workforce.
                                           though these resources may differ based on
                                           local and cultural needs, they generally offer
                                           similar elements around nutritional, physical          Folding in respect
                                           and mental well-being. here are just a few             We’re building an increasingly diverse workforce
                                           programs employees can take advantage of:              and supplier base because we know that having
                                                                                                  different perspectives means better decision-
                                           •	 lifestyle improvement programs, such as             making. this approach also enables us to be
                                              stress management, weight management                even closer to our diverse consumers.
                                              and smoking cessation.
                                           •	 fitness and/or sports facilities on site,           at Kraft foods, to ensure everyone can
                                              incentives for gym membership and                   contribute to his or her fullest potential, we
                                              employee sports competitions.                       don’t permit discrimination or harassment
                                                                                                  based on age, race, disability, national origin,
                                           •	 health screenings and exams, including              religion, sex, sexual orientation or any other
                                              vaccinations and flu shots.                         legally protected status.
                                           •	 healthier options and nutrition information
                                              in our cafeterias and canteens.
                                           •	 newsletters/intranet sites that offer health
                                              tips and work-life and flex-time programs.

WOrKPlaCE and CulturE: BECOMing PErfOrManCE-drivEn, valuEs-lEd                                                                                  Index
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                                            aligned with our value of “being open and             Our global focus is on gender diversity.
                                            inclusive,” our global diversity and inclusion        in the u.s., we also measure progress on
                                            strategies provide direction to our employees         our representation of minorities. in 2010,
                                            worldwide. Our efforts focus on three strategic       minorities accounted for 21.5 percent of
                                            areas: culture, partnerships and accountability:      our u.s. workforce.

                                            •	 Our culture requires that we communicate           Others are recognizing us for advancing and
                                               openly, seek input from employees, and             fostering an inclusive culture. for example,
  delICIOUS @ WORK                             provide diversity and inclusion training for       in 2010, DiversityInc named us one of its
  We’re working across our company             employees at key career stages.                    “50 Best Companies.” Working Mother
  globally to hire, develop and retain                                                            magazine has named us one of its “100 Best
                                            •	 Partnerships are vital to our success.
  more women. in 2010, 43 percent of                                                              Companies” for several years running. and in
                                               internally, our 10 employee resource groups,
  our salaried employees were women                                                               2010, LATINA Style magazine rated us no. 8
  and they made up 35 percent of our           made up of diverse employees around the
                                                                                                  on its “50 Best Companies for latinas” report—
  management team.                             world, help us promote and drive diversity
                                                                                                  up from no. 25 in 2009.
                                               and inclusion. External partnerships with
                                               organizations and associations that share
                                                                                                  We’ve looked beyond our four walls too. for
                                               our commitment to diversity and inclusion
                                                                                                  more than 25 years, Kraft foods has invested
                                               help us accelerate the pace of change.
                                                                                                  in supplier diversity because it’s good business
                                            •	 finally, in diversity, as in everything else,      to explore a variety of purchasing options.
                                               we are accountable to each other to uphold         diverse suppliers have an equal opportunity
                                               our values. since 2009, we have linked             to work with Kraft foods and its subsidiaries
                                               diversity and inclusion to executive incentive     regardless of race, national origin or gender.
                                               compensation to increase our leaders’

WOrKPlaCE and CulturE: BECOMing PErfOrManCE-drivEn, valuEs-lEd                                                                                 Index
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                                               Our supplier diversity team develops and         Spicing it up with
  delICIOUS @ WORK                             executes global strategies, in line with our     talent development
  supplier diversity examples in               supplier diversity guidelines, to increase the
  north america:                               use of minority- and women-owned businesses.     like building great brands, increasing the skills
                                               We look to all of our suppliers for product      and talents of our people takes time, energy
  •	 in 2010, we began sourcing the                                                             and expertise … but done right, great brands and
     majority of adhesives for north
                                               and service innovations at a competitive cost,
     american products from minority-          without compromising quality or food safety.     great people deliver great value for many years.
     owned Adhesive Systems, Inc.,             We also are stepping up efforts to ensure
     bringing capital investments and          our suppliers use diverse suppliers.            Our performance management program
     jobs to the detroit, Michigan,                                                            creates a connection between our business
     metropolitan area.                        to help advance our supplier diversity efforts, strategies, our employees’ development and
  •	 We were one of the first companies        we offer a supplier registration portal for     the individual performance required for the
     to make a pledge to Chicago               minority vendors certified by a third party,    company’s success. We believe people’s
     United’s Five Forward Initiative™,        such as the national Minority Supplier          achievements are based on not only milestones
     demonstrating our commitment                                                              and deliverables, but also their demonstration
                                               development Council or Women’s Business
     to growing relationships with five
                                               enterprise national Council. Once registered,   of Kraft foods’ values. We are explicit in our
     local minority- and women-owned
     companies. as we’re making                minority- and women-owned businesses receive expectations of our employees and draw the
     progress toward our goal, we’re           notification of upcoming sourcing opportunities connection to creating a performance-driven,
     creating a win-win for our new            and outreach events at Kraft foods.             values-led culture.
     business partners and Kraft foods:
    - Cano Container Corporation,              Everyone wins when we have a diverse             Kraft foods’ rigorous and consistent approach
      a hispanic-owned supplier of             workforce and a diverse supplier base.           to all elements of performance management—
      corrugated boxes to Kraft foods,                                                          goal setting, ongoing informal and formal
      more than doubled its warehouse
                                                                                                performance feedback, development planning
      capacity in the Chicago
      suburban area.                                                                            and assessment—provides a strong framework
    - CSMI, a minority- and women-
                                                                                                for managers and employees as they translate
      owned engineering and design                                                              company strategies into the work they do
      consulting business in a Chicago                                                          every day.
      suburb, more than doubled its
      sales with Kraft foods in the past
      year, which enabled the company
      to hire additional workers.

WOrKPlaCE and CulturE: BECOMing PErfOrManCE-drivEn, valuEs-lEd                                                                              Index
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                                              Our performance management program sets            Serving up a stronger company
                                              expectations; requires accountability; engages
                                              employees and managers in feedback, both           Providing a safe, inclusive and rewarding
                                              informal and formal; and fosters development.      workplace is critical for any company that hopes
                                                                                                 to innovate, grow and lead. in our journey toward
                                              We’re clear about what our employees need          a culture driven by performance and led by
                                              to do to succeed—and we help them do it.           values, we’re building a stronger company and
                                              Our leadership imperatives and competencies,       place to work that attracts and retains the
                                              functional/technical competencies and career       thinkers, problem-solvers and doers, who will help
                                              models, along with Kraft foods’ values, provide    define the food industry, for decades to come.
                                              the organization with a common language that
                                              describes expectations and development for
                                              employees. Our tools and training support the
  Making a delicious difference is            elements of our performance management
  integral to our corporate culture           process, including development planning.
  and values.
  nearly 25,000 employees in 56               through Kraft foods’ global succession
  countries, including Chairman and           planning program, we develop our next
  CEO irene rosenfeld, helped fight           generation of leaders by determining
  hunger and promote healthy
                                              development actions that align with our
  lifestyles in their communities during
  Kraft foods’ second annual delicious        business strategies and needs, the employees’
  difference Week. they planted               capabilities and potential career opportunities.
  community gardens, built playgrounds,       Our program drives consistency in how we
  assisted at food banks and served           assess, develop and deploy our talent against
  nutritious meals to people in need.         the roles most critical to Kraft foods’ success.
  “i love the look in people’s eyes
  when they see you helping out. it
  makes you feel good,” said sabrina
  Warner, serving at Chicago’s
  inspiration Café, which provides free
  restaurant meals to the homeless
  and low-income residents.

WOrKPlaCE and CulturE: BECOMing PErfOrManCE-drivEn, valuEs-lEd                                                                                Index
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GOvernAnCe AnD COMpLiAnCe:                                                        the trust of consumers, customers, communities,
                                                                                  regulators, suppliers and, of course, employees is

insPiring trust                                                                   something we do not take for granted. We strive
                                                                                  to earn that trust every day by doing what we say
                                                                                  we will do and holding ourselves accountable,
                                                                                  even on the occasions when we fall short. and,
                                                                                  as a public company, we have the added
                                                                                  responsibility to be open and responsive to our
                                                                                  approximately 80,000 shareholders worldwide.

                                                                                  living up to these expectations and obligations
                                                                                  is not easy. indeed, it requires detailed planning
                                                                                  and hard work. that’s why we have structures,
                                                                                  policies and processes to help promote the
                                                                                  ethical and efficient governance of our company.
                                                                                  and we have internal and external auditors to
                                                                                  monitor our compliance with those policies and

                                                                                  Starting at the top
                                                                                  Our Board of directors governs Kraft foods in
“One thing is certain—when gaining a business                                     line with our Corporate Governance Guidelines.
 advantage means violating the rules or ignoring                                  ten of our 11 directors are independent under
                                                                                  the new York stock Exchange listing standards.
 our values, we don’t do it.”                                                     the chief executive officer is the only
Kraft foods Code of Conduct, introduction                                         employee director.

gOvErnanCE and COMPlianCE: insPiring trust                                                                                     Index
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                                                all Board committees consist entirely of            given the increased focus on executive
  delICIOUS @ WORK                              independent directors. the Board has a lead         compensation in recent years, in 2010, the
  If our Code of Conduct doesn’t                director—an independent director who serves as      Board’s human resources and Compensation
  cover a specific situation, our               the principal liaison between the chief executive   Committee completed a thorough analysis
  employees draw on our values                  officer and other independent directors—to          of compensation practices and made several
  to guide them:                                increase the Board’s effectiveness, promote         adjustments to Kraft foods executive
  We inspire trust.                             open communication among independent                compensation programs. starting in 2010, the
  We act like owners.                           directors, provide independent Board leadership     mix of grants to senior management, including
  We keep it simple.                            on behalf of shareholders and chair meetings        the named executive officers, has been
  We are open and inclusive.                    of the independent directors.                       50 percent performance shares, 25 percent
  We tell it like it is.                                                                            stock options and 25 percent restricted stock.
  We lead from the head and the heart.
                                                While the Board does not have a written policy      this mix places more emphasis on performance-
  We discuss. We decide. We deliver.
                                                regarding diversity, the company endeavors to       based compensation—that is, performance
                                                nominate and assemble a Board composed              shares and stock options.
                                                of individuals with diverse views, backgrounds
                                                and professional experiences. for example,          Setting clear standards on integrity
                                                three directors are women. the representation
                                                of women on our Board is almost twice the     for employees, we developed our Code of
                                                fortune 500 average of 15.7 percent, as       Conduct as the cornerstone of our commitment
                                                reported in 2010 by Catalyst.                 to doing business with integrity. the Code is
                                                                                              concise, clear and unequivocal, and available
                                                all non-employee Board members are expected in 34 languages. By stating 10 simple and
                                                to adhere to our Code of Business Conduct and wide-ranging rules, the Code links our business
                                                ethics for non-employee directors. this Code  performance with our core values and draws
                                                addresses such issues as legal and regulatory strict ethical boundaries. it makes plain, for
                                                compliance and conflicts of interest.         everyone who works at Kraft foods, what we
                                                                                              believe is the proper way to do business.

gOvErnanCE and COMPlianCE: insPiring trust                                                                                                   Index
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                                                Our Code of Conduct reflects our belief that          and responsible marketing. We continuously
  delICIOUS @ WORK                              ensuring compliance and integrity is a never-         measure and evaluate the effectiveness of
  in 2009, we launched a new                    ending process. We’re continually making sure         our compliance and ethics programs.
  Ethics in action awards program               our standards are high, expectations are clear
  to recognize employees who act                and that we have the tools and processes in           ensuring people feel safe
  with ethical courage and lead with            place for meeting them. We regularly perform
  integrity. in 2010, several employees         assessments of key legal and compliance risks
                                                                                                      to speak up
  received these global awards:
                                                across our entire company.                            under our speaking up Policy, we expect
  •	 a customer finance analyst in the                                                                employees to ask questions and raise concerns
     Philippines spoke up to protect                                                                  about business practices when they see
     the business and ensure that we            educating employees on ethics
                                                                                                      something they think may be wrong.
     didn’t employ an ex-colleague              Our chief compliance officer and five regional
     with a reputation for negligence
     and dishonesty.
                                                compliance officers—with support from other           Employees have several avenues for speaking
                                                members of the Compliance & integrity and             up, including their supervisors, compliance
  •	 a line operator in slovakia took           legal groups—help employees understand                officers or human resources contacts.
     responsibility for food safety and
                                                our ethical standards. training educates
     made the hard decision to stop
     production to avert a potentially          employees worldwide about our ethics and              for times when employees are not comfortable
     serious problem.                           compliance practices.                                 speaking with any of our internal sources,
  •	 a manager of European exports in
                                                                                                      or simply wish to remain anonymous, we offer
     switzerland displayed unwavering
                                                in 2010, exempt Kraft foods employees at all          external support. Consistent with applicable
     integrity when refusing to make an         levels took our Code of Conduct online training       local laws, we have established a toll-free
     “unofficial” payment to customs            and completed an acknowledgment form. We              telephone Helpline, which is operated by
     officials.                                 were able to include all exempt employees             an independent company, as well as a
  •	 in the u.s., a senior scientist from       because we doubled the number of languages            corresponding Webline, so that our employees
     new York worked tirelessly to put          offered for the course. in late 2010, we began        can confidentially and, if they wish, anonymously
     safety and quality first, assuming a       providing this course to our legacy Cadbury           report instances of suspected wrongdoing or
     leading role in our response to a          employees.                                            ask questions about compliance matters. the
     pistachio recall.
                                                                                                      helpline and Webline are available globally
                                                in addition, we offer in-depth courses to             and allow employees to discuss their concerns
                                                employees based on their responsibilities.            in their own languages.
                                                topics include food safety, antitrust, anti-bribery

gOvErnanCE and COMPlianCE: insPiring trust                                                                                                        Index
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                                             anyone outside of our company who suspects          Holding ourselves and our suppliers
                                             wrongdoing by a Kraft foods employee or             to high standards
                                             business can contact the helpline, Webline
                                             or our Compliance & integrity group at              We select suppliers (including consultants and
                                                            other service providers) around the world based,
                                                                                                 in part, on whether their ethical standards align
                                             We also encourage our employees and those           with ours. Our guiding principle is that we will
                                             outside our company to report concerns              not expect more of our suppliers than we
                                             about our fiscal controls, auditing matters         expect of ourselves.
                                             or anything else that appears to involve
                                             malfeasance of any kind. Please report such         We created a summary of our corporate social
                                             concerns to     responsibility expectations in three public
                                                                                                 statements, which are substantively consistent
                                             in addition, Kraft foods monitors public policy     with long-standing Kraft foods’ policies:
                                             and participates in the public discussion on
                                             issues affecting our company. some examples         Kraft Foods Statement on Human Rights
                                             of issues include food safety and security,         Kraft Foods Corporate Responsibility Guidelines
                                             nutrition, biotechnology, environmental
                                             responsibility, food labeling, marketing and        Corporate Responsibility expectations
                                             packaging. and, when we engage with                 for direct Suppliers
                                             governments, we follow the rules and do so
                                             transparently. for example, we voluntarily          Most major suppliers and customers have
                                             publish a list of all Kraft foods’ U.S. political   requirements regarding corporate responsibility
                                             contributions in the Corporate Governance           expectations that have led to a proliferation of
                                             section of our website.                             corporate codes of conduct and assessment
                                                                                                 requests. We helped create what we consider
                                                                                                 to be a simpler approach.

gOvErnanCE and COMPlianCE: insPiring trust                                                                                                   Index
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                                             Kraft foods is a founding member of the            •	 Completed PrOgrEss pilots at seven
  delICIOUS @ WORK                           Program for responsible sourcing (AIM-                of our facilities.
  in november, 2010, guided by               PROGReSS), sponsored by Association
                                                                                                •	 set aggressive goals to complete self-
  the objective to demonstrate the           des Industries de Marque (aiM) in Europe
                                                                                                   assessments and audits of 100 percent
  importance of responsible sourcing         and the Grocery Manufacturers Association
                                                                                                   of our global locations during the next
  for the sustainability of business,        in the u.s. this industry initiative allows a
  leading companies—including                                                                      three years.
                                             supplier to provide common information about
  Kraft foods—collaborated to hold
                                             corporate social responsibility performance so     •	 Worked with our suppliers to initiate
  a first-of-its-kind supplier forum
  on responsible sourcing in                 each customer can make business decisions             PrOgrEss at more than 300 of their
  são Paulo, Brazil.                         independently and in accordance with its own          facilities and completed 10 suppliers’ audits.
                                             corporate responsibility standards.
  the supplier forum included 280
  people—representatives from brand                                                             Adding up to trust
  companies, supplier organizations          to demonstrate our commitment to this
  and internationally accredited             important initiative, in 2010, Kraft foods:        Of all of our assets, the public’s trust in us
  third-party audit agencies.                                                                   is the one we value most. Our governance
                                             •	 Completed foundational work, by assessing       policies, our Code of Conduct and our
  the focus of the forum was on
  the human aspect of sustainability,           risk within our supply chain through self-      expectations of suppliers are all parts of our
  emphasizing the people in our                 assessments and verification by data            daily effort to preserve trust. like any company,
  value chains and in the communities           systems and third-party audits.                 we’ll sometimes fall short, but our standards,
  where we operate. it was an excellent                                                         policies and systems make it plain to anyone
  platform for the supplier partners to      •	 Provided critical training to a number of       who works for us, does business with us or
  engage with senior business leaders           our facility managers and suppliers globally.   buys our products: We’re working to create
  in order to get a sense of the                topics included corporate responsibility,
  urgency and seriousness of this                                                               a more delicious world—every day.
                                                PrOgrEss, and the importance of
                                                assessments and audits to continuously           improve management systems and respond
                                                to customers’ requests for information.

gOvErnanCE and COMPlianCE: insPiring trust                                                                                                   Index
at Kraft foods, we’re creating a more
delicious world and we’d love to hear
your thoughts on how we’re doing.
Please send us an e-mail at

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