India, the world's largest single milk producing country, produces more than half of the milk in Asia. Global milk production in 2005 is forecasted to be up 2.4% from 2004, led by India and the U.S., according to an industry group.
Kraft Foods may gain the freedom it needs to maneuver toward higher profits when parent Altria spins off the company later this year, according to some analysts. But most note the packaged foods industry still faces tough economic conditions. Altria may prepare to shed Kraft at the conclusion of a major Florida tobacco case.
General Mills will battle rival cereal maker Kellogg Co. by boosting its marketing budget in the second half of its fiscal year, according to General Mills CEO Steve Sanger. The company is well-positioned for growth as it rolls out new cereals and leverages its health-focused brands such as Yoplait and 8th Continent, Sanger told an investor conference.
Research firm eMarketer projects consumer packaged goods firms will spend $470 million in online marketing this year, up 17% from 2005. While some of the spending will go to advertising buys, eMarketer anticipates greater returns for CPG companies in building their own branded sites to encourage relationships with consumers.
Several leading quickserve chains are touting value menus as a way to bring in customers who are strapped with high energy bills. "This is not about after-holiday spending," a McDonald's spokesman said. "It's about keeping our value strategy top of mind."