24. Read some facts about the history of Kraft Jacobs Suchard ag, a leading European food company, and draw a scheme of its

development. Find information in Internet about another well-known company and prepare a three-minute talk.

Kraft Jacobs Suchard AG, part of Philip Morris Companies Inc., is a leading European food company. Formed in 1993 through the combination of Jacobs Suchard AG and Kraft General Foods Europe, Kraft Jacobs Suchard (KJS) specializes in three food categories: coffee (42% of operating revenues), confectionery (30%), and cheese/grocery (28%). Key brands include Carte Noire, Jacobs, Cote d'Or, Milka, Suchard, Dairylea, El Caserfo, Kraft.

Of KJS's immediate predecessor companies, Kraft General Foods Europe was formed in 1989 from the merger of Kraft Europe (founded in 1927 and purchased by Philip Morris in 1988) and General Foods Europe (founded in 1954 and bought by Philip Morris in 1985). Jacobs Suchard's history dates back to 1825, having its origins in three spirited entrepreneurs: Philippe Suchard and Johann Jakob Tobler, confectioners; and Johann Jacobs, a coffee merchant. The Suchard and Tobler companies joined forces in 1970 to form Interfood, which Jacobs' coffee company joined 12 years later to form Jacobs Suchard. Philip Morris acquired Jacobs Suchard in 1990.

Soon after joining the Philip Morris family, Jacobs Suchard went on a spending spree, scooping up more than a dozen companies in 1992 and

1992. alone. The most significant of these was the US$1.5 billion 1993 purchase of leading Scandinavian confectionery maker Freia Marabou. Most of the other acquisitions were in the areas of coffee and confectionery: coffee makers Splendid of Italy and Fiesta of Greece, as well as confectionery makers in Czechoslovakia, Spain, Hungary, the United Kingdom, Poland, Lithuania, and Bulgaria. Moreover, Jacobs Suchard's acquisition activity ranged beyond its two core food groups, picking up Maarud Cheese of Norway, Scandinavian snack maker Estella, and a Spanish maker of cheese. The company also established two joint ventures in 1993: in Turkey, Marsa, which produced margarine and edible oils; and in Poland, Mazowsze Chorzele, a maker of cheese.

In late 1993 Philip Morris decided to merge its two main European food units, in a move designed to improve productivity, cut costs, streamline management, and unify marketing.

The creation of Kraft Jacobs Suchard did nothing to slow down the company's acquisitiveness, which was particularly acute in Eastern Europe. In 1994 KJS took control of the largest chocolate producer in Romania, Poiana-Produse Zaharoase. The following year brought confectioners in the Ukraine (Ukraina) and Russia (Petroconf) into the KJS fold. In 1994 the company also purchased the Lyon's instant coffee brand from Allied-Lyons of the United Kingdom, and KF Co-Op Cirkel of Sweden, maker of coffee and spices. In 1996 and 1997 KJS also made several divestitures of non core businesses, including Malaco candy in Scandinavia, Hayat mineral water in Turkey, Fiesta croissants in Greece, and the Spanish confectionery company acquired in 1992.

Future KJS growth was also expected to come from its Middle East and Africa unit, headquartered in London. By 1998 this unit was marketing KJS products in more than 70 countries. Saudi Arabia and Kuwait were two of KJS's strongest markets. In each, the company held the number one market position in cream cheese and the number two position in coffee. The rapidly growing Kraft Jacobs Suchard appeared well positioned to compete with the Nestles and Unilevers of its world.