Kraft Foods dealing with market challenges in East Africa this year as nation's consumers cutting non-essential spending amid slumping currencies, surging inflation
November 9, 2011
– Kraft Foods Inc. has dealt with market challenges in East Africa in 2011 as consumers in that nation are cutting non-essential spending amid slumping currencies and surging inflation, Bloomberg reported Nov. 9.
Tim Fry, general manager of Kraft’s Central and East African operations, said East Africa’s depreciating currencies and rising price pressures have impacted the company.
Inflation in Kenya — East Africa’s biggest economy — accelerated in October for the 12th consecutive month to 18.9%. Meanwhile, Uganda’s rate jumped to an 18-year high of 30.5%, as the worst regional drought in 60 years curbed agricultural production.
Kenya’s currency has weakened 16% so far this year. Uganda’s has declined 12%.
The primary source of this article is Bloomberg, New York, New York, on Nov. 9, 2011.