While Kraft is the world’s second-largest food and beverage company, we know that what matters most are the individual moments each of our consumers shares with our brands. That’s why consumers are the focus of everything we do.

Whether they are connecting over coffee with friends, or enjoying a family meal or treat at the end of the day, we win when we make those moments a bit tastier, easier or better-for-them. Hundreds of millions of times a day, around the world, we’re helping people eat and live better.

The Brands The World Loves
Snacks
Around the world, Kraft offers an array of beverage choices to quench every thirst – from refreshment to nutrition to relaxation. In the beverages sector, our key brands include Carte Noire, Gevalia, Jacobs, Maxwell House, Capri Sun, Kool-Aid, Tang and Clight.

Beverages
At breakfast, dinner and every eating occasion in between, cheese and dairy products are an important and delicious part of consumers’ diets around the world. In the cheese & dairy sector, Kraft’s key brands include Kraft, Philadelphia, Velveeta, Cracker Barrel, Breakstone’s and Dairylea.

Cheese & Dairy
At breakfast, dinner and every eating occasion in between, cheese and dairy products are an important and delicious part of consumers’ diets around the world. In the cheese & dairy sector, Kraft’s key brands include Kraft, Philadelphia, Velveeta, Cracker Barrel, Breakstone’s and Dairylea.

Grocery
Whether it’s a salad dressing, breakfast cereal, dessert or condiment, Kraft has the grocery brands that feature prominently in consumers’ shopping baskets. In the grocery sector, our key brands include Post, Jell-O, Miracle Whip, Kraft, Cool Whip and A.1.

Convenient Meals
Great tasting, quick, convenient, a good value. These are the qualities that consumers are looking for in meal products and Kraft delivers in a big way. In the convenient meals sector, our key brands include Oscar Mayer, DiGiorno, Lunchables, Kraft, Tombstone and Simmenthal.

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Kraft Foods 2007 Annual Report

Kraft Foods Inc.
Three Lakes Drive
Northfield, IL 60093-2753
www.kraft.com

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Kraft Foods Magazine

Kraft was incorporated in 2000 in the Commonwealth of Virginia. We manufacture and market packaged foods and beverages worldwide in more than 150 countries.

We have nine brands with revenues exceeding $1 billion: Kraft cheeses, dinners and dressings; Oscar Mayer meats; Philadelphia cream cheese; Maxwell House coffee; Nabisco cookies and crackers and its Oreo brand; Jacobs coffees, Milka chocolates and LU biscuits. We have more than 50 additional brands with revenues of at least $100 million.

Prior to June 13, 2001, Kraft was a wholly-owned subsidiary of Altria Group, Inc. (“Altria”). On June 13, 2001, we completed an initial public offering of 280,000,000 shares of our Common Stock at a price of $31.00 per share.

In the first quarter of 2007, Altria spun off its remaining interest (89.0%) in Kraft on a pro rata basis to Altria stockholders in a tax-free transaction. Effective as of the close of business on March 30, 2007, all Kraft shares owned by Altria were distributed to Altria’s stockholders, and our separation from Altria was completed (the “Distribution”).

Before the Distribution, Altria converted all of its Class B shares of Kraft common stock into Class A shares of Kraft common stock. The Distribution ratio was calculated by dividing the number of shares of Kraft Common Stock held by Altria by the number of Altria shares outstanding on the record date, March 16, 2007. The distribution ratio was 0.692024 shares of Kraft Common Stock for every share of Altria common stock outstanding. Following the Distribution, we only have Class A common stock outstanding.

Because Kraft is a holding company, our principal source of funds is dividends from our subsidiaries. Our principal whollyowned subsidiaries currently are not limited by long-term debt or other agreements in their ability to pay cash dividends or make other distributions with respect to their common stock.

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