Tang Joined Kraft Foods’ “Billion-Dollar” Brand Club | 2011 Press Releases | China | Mondelez International, Inc.

Tang Joined Kraft Foods’ “Billion-Dollar” Brand Club

Developing Market Made Significant Contribution to Tang’s Growth

(June 30,2011, Shanghai, China)- Kraft foods announced that the world’s favorite powdered beverage brand Tang has just achieved its Billion-Dollar brand status and joins the ranks of Oreo cookies, Milka and Cadbury chocolates and Trident gum worldwide.

In 2006, Tang was just an over $500 million global brand. And over the past four years alone, the number has been nearly doubled. According to Euromonitor 2010, at more than three times the size of its nearest competitor, Tang quenched the world’s thirst with more than 20 billion servings in 2010 across 90 countries. Tang attributes its entry into this elite pack to its growth in the company’s Developing Markets of about 20 percent in each of the last two years.

In 2007, Sanjay Khosla, President, Kraft Foods Developing Markets, launched Winning through Focus strategy which emphasized on five categories, 10 power brands and 10 markets. It has helped boost revenues in Kraft Foods Developing Markets from $6.0 billion in 2007 to $13.6 billion in 2010. Tang, one of the 10 power brands, has been an important part of this profitable growth.

"Our business model in Developing Markets of giving local leaders freedom within a framework to act like entrepreneurs has been tremendously successful -- Tang is no exception,” said Khosla. “With an entrepreneurial spirit, our Tang teams across the world connected virtually to harness our global powdered beverage technology and expertise. They used a glocal approach, combining the best of global and local to transform Tang.”

TANG was introduced into China in 1986. TANG is well known to Chinese consumers with its multi-vitamin nutrition and fruit flavor.

Tasty Nutrition Customized for Local Markets

A key to unlocking growth was the introduction of local fruit flavors. Orange flavor tops the sales charts worldwide, but local flavors like mango in the Philippines, soursop in Brazil, horchata in Mexico and pineapple in the Middle East now make up about 25 percent of Tang sales in developing markets. Chinese consumers enjoy flavors such as orange, orange mix, lemon, pineapple, mango, apple, peach and grape.

In addition, Tang takes the global idea of fortification and localize it to meet regional nutrition needs. While taste is king, kids’ diets in developing markets are often deficient in vitamins and minerals. Tang is a delicious source of key nutrients. “True to its heritage as a source of Vitamin C, Tang is fortified with vitamins and minerals,” said Khosla. “For example, we fortify Tang with Vitamin C in all geographies, but in Brazil and the Philippines where kids are iron deficient, we fortify with iron as well as other vitamins and minerals.”

Affordable, Convenient Packaging Unlocks Growth

Size matters. The Tang team learned that in many markets, traditional canisters of Tang were too big. So they designed smaller, more affordable sizes, such as two-liter packs in Mexico priced below $0.50 USD and a single-serve pack in the Middle East. They also invented a new, cost-effective sampling technique.

"Our team developed a new package that could give consumers a free sample of a new flavor, alongside their traditional favorite,” said Khosla. “We took this innovation across borders, which led to a record 75 million samplings in Mexico alone. Today, this proprietary packaging runs on 28 Tang lines around the world.”

In China, Glass pack - one piece for one cup is portable and popular for young mothers. In 2011 TANG launched an innovative packaging - spout pack: which brings consumer a better user experience and is well-accepted by market.

Tang Goes Green

This traditionally orange beverage is getting greener. The company standardized its powdered beverage pouch size and structure across Latin America to eliminate 3 million pounds of packaging annually.

Tang also uses less packaging per serving than bottled beverages. And because it’s a lightweight powdered beverage it requires less energy to transport. The result: a carbon footprint that’s a fraction of heavier ready-to-drink beverages.

Building on its “green advantage”, Tang encourages kids to make a difference with its “Prep, Drink, Do” campaign in Brazil which has inspired 90,000 kids to join Tang “Green Brigades” dedicated to package recycling. A similar campaign recently launched in Mexico.

ABOUT KRAFT FOODS

Kraft Foods is building a global snacks powerhouse and an unrivaled portfolio of brands people love. With annual revenues of approximately $48 billion, the company is the world’s second largest food company, making delicious products for billions of consumers in approximately 170 countries. The portfolio includes 11 iconic brands with revenues exceeding $1 billion – Oreo, Nabisco and LU biscuits; Milka and Cadbury chocolates; Trident gum; Jacobs and Maxwell House coffees; Philadelphia cream cheeses; Kraft cheeses, dinners and dressings; and Oscar Mayer meats. Approximately 70 brands generate annual revenues of more than $100 million.

Kraft Foods (www.kraftfoodscompany.com; NYSE: KFT) is a member of the Dow Jones Industrial Average, Standard & Poor's 500, Dow Jones Sustainability Index and Ethibel Sustainability Index.

A Billion Reasons to Celebrate

To commemorate the news, in the coming weeks, 15 Tang markets will host special employee celebrations, including samplings of the brand’s exotic fruit flavors.

Media Contacts:

 
Regina Hui
+86 (21) 6080 8368
regina.hui@mdlz.com
Lin Wan
+86 (21) 6080 8211
lin.wan@mdlz.com