1103982--3/1/2007--KRAFT_FOODS_INC

related topics
{product, market, service}
{capital, credit, financial}
{cost, regulation, environmental}
{acquisition, growth, future}
{product, liability, claim}
{stock, price, share}
{condition, economic, financial}
{operation, international, foreign}
{competitive, industry, competition}
{cost, operation, labor}
The Company's profitability may suffer as a result of competition in its markets. The Company must leverage its brand value propositions to compete against lower-priced private label items and offset economic downturns. The consolidation of retail customers may put pressures on the Company's operating margins and profitability. Commodity price increases will increase operating costs and may reduce profitability. Sales of the Company's products are subject to changing consumer preferences, and the Company's success depends upon its ability to predict, identify and interpret changes in consumer preferences and develop and offer new products rapidly enough to meet those changes. The Company's foreign operations are subject to additional risks. The Company may not be able to successfully implement its restructuring program. The Company may not be able to successfully consummate proposed acquisitions or divestitures or integrate acquired businesses. The Company may experience liabilities or negative effects on its reputation as a result of product recalls, product injuries or other legal claims. New regulations could adversely affect the Company's business. The Kraft Spin-Off from Altria Group, Inc. may cause short-term volatility in the trading volume and market price of the Company's common stock. Changes in the Company's credit ratings may have a negative impact on the Company's financing costs. Volatility in the equity markets or interest rates could substantially increase the Company's pension costs.

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