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Reuters reports that Kraft Foods plans to invest as much as a half-billion dollars in new marketing and promotional money as a way to build market share for its myriad brands.

The goal is to recapture sales from private label, as well as to put pressure on the company's brand competitors. The big winner, according to analysts, will be consumers - who are likely to see across the board price cuts on a number of SKUs in numerous categories.

The spending is so significant that Kraft CEO Roger Deromedi has said he will eliminate 6,000 jobs and close 20 plants in order to pay for marketing spending.
KC's View:
And so, once again the supermarket business - at the urging and behest of one of the world's best and biggest CPG companies - will tell the consuming public that it is all about price. Not quality, not safety, not nutrition. Just price.

Value is important, but it can be defined a lot of different ways. This strikes us as a way of building short-term market share…but not equity.