Kraft to Construct New R&D Center

Kraft Foods Inc. (KFT - Analyst Report), a leading manufacturer and marketer of packaged food and grocery products worldwide, announced its plans to invest about €15 million (approximately $20 million) to establish a new biscuit research and development (R&D) center in Saclay , France , a suburb of Paris .

The new facility is expected to serve as the company's European Center of Expertise for Biscuits. The primary focus being on innovation and new product development for many of Europe's most loved biscuit brands, including LU, Mikado, Oreo, Prince, Saiwa and TUC. The facility will also be responsible for bringing forward major biscuit technology platforms for the European market and beyond.

The new R&D center, once completed will add to the other 11 existing Kraft Foods R&D centers that support its businesses around the globe.

The new center that is scheduled to open during the first half of 2011, will host a team of researchers, product and packaging developers, and nutritionists dedicated to supporting the European biscuit business. These employees are currently located in leased space within the Groupe Danone R&D Center in Palaiseau , France , very close in proximity to the  new Center.

Management considers France as an important strategic market for biscuits and for Kraft Foods globally. It states that the investment makes business sense, since it allows the company to continue to drive biscuit innovation and future growth.

Earlier in September 2009, Kraft Foods made a takeover bid for Cadbury (CSY) at a purchase price of $16.2 billion (£10.2 billion). However, Cadbury rejected the offer, saying it was a significant undervaluation of the company.

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