While Philip Morris is best known as the maker of Marlboros, the company has also captured key segments of overseas food and beverage markets, through a combination of savvy purchases of local companies and expert marketing and distribution systems. M uch of Kraft's international suc cess stems from the acquisition of local companies with developed market bases. Kraft Foods International also successfully came to dominate major European confectionery markets through the purchases of the Scandinavian confectioners, Freia Marabou , and Terry's Chocolate , a mid-sized British firm. Kraft International's subsidiaries include Toblerone , the Swiss-based chocolate maker. With food, tastes vary dramatically from country to country.
Food products have to be geared to local tastes.
While Kraft expects to increase direct exports in the coming years, Mr. Collins said the company has acquired or developed manufacturing operations in almost 30 countries. However, it has also begun making inroads into Eastern European and Asian markets. Kraft now has four joint-venture plants in China, with majority control, making coffee, dairy products, chewing gum and Tang breakfast drink. W all Street has been both bullish and bearish on Philip Morris. Most analysts believe it is too early to calculate the cost of a pending settlement with two dozen states that have filed suit against the major tobacco companies, including Philip Morris.