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Kraft Foods has a good strong-hold in North America and hence the reportable segments there are subdivided as per the product categories. However, the company follows a country-led model in Central Europe as well as the Developing markets. This is mainly because the company hasn’t been able to exploit these markets to a great extent and the acquisition of Cadbury is expected to help the company provide an easy entry and help Kraft Foods in directly tapping these highly profitable markets where Cadbury is the market leader in most segments. The break-up of Kraft Foods operating income from the 3 segments over the years is given below:From the above figures, it is clearly evident that Kraft Foods has its major sales in the US and hence is making acquisitions like Cadbury lately to exploit the European and Developing Markets.In the Gum market, Cadbury occupies the no. 2 position and in Candy market, its number one worldwide. Cadbury has been especially substantial in the emerging markets, which account for 33% of its revenues and 60% of its revenue growth, and thus these markets are the key focus of Cadbury.


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