Kraft
Foods has great long-term attractiveness for a variety of reasons, especially its diversity.
Kraft initially began in the 1920s with dairy products, but it has since expanded drastically,
encompassing cereals, condiments, snacks, and much more. Kraft made an intentional decision to
diversify its portfolio to protect against weakness in any single area of the market and has
therefore created horizontal integration by owning product lines in most areas of food
production.
The size of the company, coupled with the variety of different
foods it offers, makes Kraft Foods a particularly attractive investment. It does its best to
guarantee profits, because it reaches a large number of consumers with its variety of brands. It
has placed itself in an ever-growing market (food production) and has continued to diversify and
improve its portfolio to meet market demands. In recent years, it has merged with Heinz to
consolidate competition and further diversify its portfolio of product...
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