Creating a more delicious world Our 2010 Report Message from Our Chairman and a2 b Chief Executive Officer

Ever since my first “job” selling As a global food company, we can help raise people up—out of hunger, out of poverty, toward Girl Scout cookies, I believed healthier lifestyles—through what we make and that business could be a force how we make it. Millions of times a day … in ways big and small … quite literally around the world, for good. Today, I know it is. we’re doing just that. And we do it at multiple points in our supply chain … from our agriculture Business is a vital part of the success of most sourcing initiatives that have made us a leading nations. From Chile to China. The United States purchaser of sustainable cocoa, coffee and to Ukraine. Well-run businesses contribute to cashews to our finished products, like Biskuat society in so many ways: Providing jobs, creating and Tiger fortified biscuits that helpI ndonesian robust supply chains, revitalizing communities, moms ensure their kids get the right vitamins innovating solutions for some of the world’s and minerals to grow to their full potential. toughest challenges, contributing to public coffers and delivering shareholder returns that “Creating a more delicious world” is a lofty Irene B. Rosenfeld enable further investment. But companies that goal to be sure. But we make it achievable by Chairman and can successfully and simultaneously balance taking a pragmatic approach. First, we focus Chief Executive Officer the short- and long-term interests of the our efforts where we can make the greatest multiple constituents they serve can do the difference. Our global priorities are food safety, most good. They can, indeed, change the health and well-being, and sustainability. Next, world for the better. we agree on the goals, strategies and actions to achieve each priority. That’s one of the reasons I’m so proud to be leading , where we say that Our goals, whether financial or philanthropic, “delicious is our difference.” Yes, our products are designed to be ambitious, but achievable. taste delicious. But to us, it’s more than that. Our strategies are long term, spanning Delicious is also our corporate purpose … the decades in some cases. But the targets we mindset and spirit we apply to everything we set to evaluate our progress are measured in do and how we do it. It’s also why we titled increments of five years or less.T hat way, the this report, “Creating a more delicious world.” same people who set the targets can also be

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held accountable for delivering them. Finally, We’re not perfect, and we’re not finished. But our actions focus on what we call the “Three Ps” by focusing on what matters most and where for creating lasting change: Products, Policies we can make the biggest difference, I am and Partnerships. All three are important, but confident we’re on the right path. We’re working I want to elaborate a bit on Partnerships. Even to support healthier lifestyles and sustainable though there is a lot we can do as the world’s agriculture. Seeking solutions that, by design, second-largest food company, many of the benefit our business and our society. Working issues we’re tackling are so big that we can for outcomes that are sustainable and scalable. only achieve lasting change when we work And sharing our progress and setbacks along with others. So together with our suppliers, the way. We can’t do everything, but we are customers and consumers … with governments, doing a great deal. We’re proud of what we’ve multilateral organizations and nongovernmental accomplished and how it is helping consumers organizations (NGOs) … we look for innovative and communities around the world live more ways to combine our inherent strengths and deliciously every day. capabilities to achieve the kinds of significant Irene Rosenfeld helps build change we all want—for ourselves, for our a playground in Chicago’s Washington Park, one of children and for generations to come. 13 playgrounds built as part of our partnership with KaBOOM! In the following pages, I encourage you to during Delicious Difference take a look at what we’re doing and what we’ve Week in 2010. During this accomplished, on our own and in partnership week, nearly 25,000 employees with others around the world. This report covers Irene B. Rosenfeld in 56 countries engaged in community activities to help both the legacy Kraft Foods and Chairman and Chief Executive Officer fight hunger and promote businesses and summarizes our 2010 progress Kraft Foods Inc. healthy lifestyles. in the areas of highest societal interest. May 2011

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Table of Contents

Table of Contents Index Creating a more delicious world | Our 2010 Report a5 b Delicious @ Work Highlights

Since 1999 in the U.S. During the last five years, In 2010, we reduced sodium In 2010, women made alone, we’ve helped we’ve improved the nutrition in 340 North American up 35% of management provide more than profile of more than products—removing nearly worldwide. 1 billion servings 5,500 products 3 million kilograms 43% of our of food (6.5 million pounds) salaried employees of salt were women

Today, we’re helping to Since 2005, we’ve significantly increased our purchases of We’ve cut improve the livelihoods certified coffee and cocoa(measured in metric tons) of more than Kraft Foods certified coffee and cocoa bean buying p97 million 1 million farmers Rainforest Alliance 50,000 * Certified™ coffee kilometers through partnerships Fairtrade sugar 24,000 (60 million miles) from our that support sustainable Fairtrade cocoa 19,000 Rainforest Alliance 11,000 global transportation network agriculture Certified™ cocoa 2005 2006 2007 2008 2009 2010

We’ve cut greenhouse gas emissions We’ve reduced We’ve reduced water We’ve cut our packaging and energy use by our waste by consumption by by nearly p * p * p * p * p100,000 18% 16% 42% 30% * greenhouse energy metric tons gases use (200 million pounds)

*Data normalized to production with a 2005 baseline.

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“INMED Partnerships for Children is proud to work with the Kraft Foods Foundation toward our shared goals to fight hunger and malnutrition, and to help youth put health into action. Together, we are creating hope and opportunity for the next generation, providing more than 100,000 of Brazil’s most vulnerable youth with the foundation of knowledge and good health they need to transform their futures.”

Linda Pfeiffer, Ph.D., President and CEO, INMED Partnerships for Children

“As the numbers of hungry increase, we need private companies like Kraft Foods to join us in the fight against hunger. It’s a fight too big for any one player, but together we can find new ways to dramatically reduce malnutrition.”

Josette Sheeran, Executive Director, “Kraft Foods Foundation is helping to make World Food Programme nutritious food available in schools and communities to combat the high rates of malnutrition in young children. Families are also learning the skills they need to make healthy choices to improve the nutritional status of their children. The Foundation’s impact will be felt for generations.”

Charles MacCormack, President and CEO, Save the Children

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“We are all responsible “CARE is pleased to be working alongside Kraft Foods to improve for ensuring the long- the lives of people living in poor communities. Through savings, term health of our education, entrepreneurship and innovative technologies, thousands planet. As the leading of cocoa farmers are benefiting from more sustainable cocoa purchaser of coffee and farming systems. Together, we are making a real difference in the cocoa from Rainforest lives of many rural families around the globe.” Alliance Certified™ Helene D. Gayle, MD, MPH, President and CEO, CARE farms, Kraft Foods is doing its part by helping farmers earn a good living as they conserve wildlife habitats and the vital natural resources on which we all depend.”

Tensie Whelan, President, The Rainforest Alliance

“Soon, 9 billion people will seek to improve their lives in the context of a single planet. And every business in every industry will be forced to grapple with finding ways to meet their needs while using less water, carbon and land. We work with companies like Kraft Foods that are willing and able to influence the future of the planet by working to positively advance the way agricultural commodities are produced, bought and sold.”

“Kraft Foods’ commitment to Fairtrade is helping to build a better future for many Carter Roberts, President and CEO, World Wildlife Fund, U.S. thousands of cocoa farmers, their families and their communities. Through this commitment, farmers can enjoy more secure, sustainable livelihoods. We look forward to building on this partnership to create a better future for even more farmers.”

Rob Cameron, Chief Executive, Fairtrade Labelling Organizations (FLO) International

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health and well-being

Health and Well-Being: Today, the world faces the paradoxical challenge of addressing both hunger and obesity. According to the World Health Organization, one in six people in the world Eat Delicious, doesn’t get enough to eat. At the same time, one in five is overweight or obese. Live Well Tackling such complex challenges requires a collaborative approach involving consumers, companies, governments and civil society.

So we take a three-pronged approach, combining our Products, Policies and Partnerships, so our cumulative efforts can help make a real difference.

Our focus is to make our brands— foods consumers love—nutritionally better and more wholesome, without compromising taste.

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health and well-being

products policies p artnerships Products: Making the foods Since 2005, we’ve reformulated or launched people love even better more than 5,500 products that meet one or more of these focus areas. Our goal is Around the world, people eat and drink about to continually grow the number of options 900 million servings of Kraft Foods products in our portfolio that give consumers better every day. That gives us an enormous choices for healthier and more wholesome opportunity to have a positive impact on foods. It’s good for consumers and it’s good consumers’ health and well-being. So our focus for business. is on making our products more nutritious and more wholesome, while still delivering the same REMOVING OR REDUCING NUTRIENTS delicious taste people have come to expect. Delicious @ Work CONSUMERS WANT less of Some of our 5,500 better Based on what our consumers tell us they Sodium Much of the world’s population is choices worldwide: want, we focus our efforts on three areas: consuming too much sodium. While sodium Brazil: Mini Philadelphia cream reduction isn’t new for Kraft Foods, in 2010 cheese with 40 percent less sodium • Foods with less fat, sodium, sugar we began to accelerate our efforts to further than the local Requeijão cheese. and calories. reduce it in our products, without compromising Iberia: Fruit & Fit biscuits, made with • Foods with more beneficial ingredients, taste or safety. This is a tough challenge for 30 percent fruit and just 49 calories the entire food industry, but we feel good per biscuit. such as whole grains, fiber, healthier oils and micronutrients. about our progress: Philippines: Fruitrition, a powdered beverage mix fortified • Foods that are “simpler:” easier-to- • In the U.S. and Canada, our largest and with a combination of vitamins and understand ingredient lines and fewer most diverse portfolios, we announced plans minerals found in fruit juices and artificial ingredients. needed by the population. to cut sodium by an average of 10 percent by 2012 across the portfolio. In 2010 alone, For more examples, see our we removed nearly 3 million kilograms Health & Wellness Fact Sheet. (6.5 million pounds) of salt from 340 products. And we plan to reduce sodium in hundreds more products.

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products policies p artnerships • In Latin America this year, we initiated plans • In Europe, since 2008, we reduced saturated to reduce sodium by an average of fat by 54 percent in our Prince biscuits. 5 percent—equal to 227,000 kilograms We’re also eliminating partially hydrogenated (0.5 million pounds) of salt—across our vegetable oils from our biscuits and exploring biscuit and cheese lines by the end of 2012. ways to reduce or limit these oils in other products worldwide. • In Europe, we continued our sodium reduction efforts with our Dairylea cheese • In Australia, we launched Philadelphia lines, where we’ve reduced sodium by cooking cream, a dairy-based cooking 30 percent since 2002. product that has 60 percent less fat than regular cooking cream. Saturated and Trans Fats Heart disease is one of the leading causes of death worldwide. Research has shown that reducing saturated fats and trans fats may help to improve heart health. And we know our consumers look at the fat content of products when trying to make healthier choices. That’s why over the years, we’ve been removing saturated and trans fats.

• In the U.S., we reformulated our 2 percent cheeses so that they taste just as good as full-fat cheese, and we launched our fat-free Skinny Cappuccino.

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products policies p artnerships Sugar Consumers are also seeking products In Europe, we offer our biscuits in with less sugar, and health officials are 100 calorie packs and our Prince biscuits encouraging people to eat less as well. So, now contain less than 100 calories per serving. we’ve taken action: We also sell Cadbury Highlights, a low-calorie drinking chocolate, with only 40 calories and • In the U.S., we reduced the sugar in our less than 1 percent fat per serving. Throughout Capri Sun juice drinks. We also introduced the U.S. and Canada, we have a wide variety of sugar-free Jell-O Mousse cups. biscuits and cheeses in 100 calorie packages. • In Latin America, we reduced the sugar Kraft Foods is a founding member of the in our Tang powdered beverages and we Healthy Weight Commitment Foundation— introduced several sugar-free products, a multiyear effort launched in 2009 to help including Clight powdered beverages. reduce obesity in the U.S., especially among • In Europe, we reduced the sugar in children. As part of that commitment, we Delicious @ Work our Belvita biscuits by about 8 percent continue to develop and introduce lower calorie during the last four years. options of many of our brands. We’ve changed These are just some of the Kraft recipes where possible to lower the calorie Foods brands where we’ve either • And globally, we offer sugar-free versions content or reduced portion sizes of existing lowered the sugar content or offer of throat lozenges and gums. a sugar-free option. single-serve products. In 2010, the Foundation members pledged to reduce 1.5 trillion calories Calories Today, many consumers are in their portfolios by the end of 2015, using looking for foods that are either lower in 2008 as the baseline. calories or come in portion sizes that can help them control their caloric intake. To meet this need, we offer a range of calorie- and/or ADDING INGREDIENTS CONSUMERS WANT portion-controlled options. We’re not just removing ingredients consumers don’t want; we’re also adding more of what they do want.

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products policies p artnerships Whole grains Most consumers don’t get Essential vitamins and minerals To help enough whole grains. So we’re finding new address malnutrition in developing markets, we ways to increase the whole grain content of offer foods fortified with micronutrients. We our products. Our researchers have developed don’t simply add the nutrients people need. a proprietary technology that enables us to We invest in technology that helps ensure use the whole germ of the grain. When we that the nutrients we use can effectively and add whole grains to our products, we’re now efficiently be absorbed by the body.A nd we able to provide consumers with much more price these products affordably so they are well of what they want and need, while maintaining within reach for millions of consumers with the taste they love. limited disposable income. Examples include:

Delicious @ Work • In the U.S., in 2010, we announced that we • Tiger and Biskuat biscuits, sold in Indonesia, would double the amount of whole grains in are fortified with nine vitamins and six Here are some examples where we’ve increased whole grain our cracker brands by 2013. When minerals. Developed in collaboration with the content in our European biscuits. we’re done, Nabisco crackers will account World Food Programme and The Indonesian for 9 billion servings of whole grains in the Association of Nutritionists, our biscuits American diet each year. supplement the daily nutritional requirements of a growing child, at an average cost of 100 • In Latin America, we added whole grains to to 500 Rupiah (between one and six cents our popular , Belvita, Ceralitas and U.S.) per pack. Club Social biscuits. • Globally, we fortify our Tang powdered • In the EU, we increased the number of our beverage drink with Vitamin C and add other biscuit and crisp bread products that contain key nutrients specific to a country’s needs— whole grains by 50 percent. such as iron in Southeast Asia, Vitamin B-12 • And, in China, we launched the country’s and folic acid in China, iodine in the Middle first whole grain biscuit, which provides East, and Vitamins A and E in Argentina 10 percent of the recommended daily and Uruguay. amount of fiber in one serving.

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products policies p artnerships Our affordable nutrition products have small remove and prevent the formation of stains when price tags, but they are big business for us. used as part of a normal teeth-cleaning routine. That’s why we chose to invest in expanded capacity. That way, we can bring more Policies: Leading in ways consumers more of the essential vitamins and minerals they need at prices they can afford. that make a difference Nutrition awareness and education are critical to Healthy smiles People chew gum for a helping consumers make better choices about variety of reasons—to help relieve stress, to their health and well-being. Our marketing and improve dental health and freshen breath, or communication policies are designed to ensure to relax and enjoy a refreshing break. Research that consumers have clear nutrition information Delicious @ Work has shown there are many oral health benefits about our products. from chewing gum … especially if it’s sugar- Few low-income families in Brazil free … and the American Dental Association Ad verTISIng to Children How we market have access to oral care. So by the time they are lucky enough and World Dental Federation agree. Just the our products matters. That’s why we take great to see a dentist, their conditions physical action of chewing gum for at least care to market and advertise responsibly— are often extreme. 20 minutes after eating stimulates saliva flow, especially to children. In 2005, we became That’s where Dentista do Bem helping to prevent cavities by reducing plaque the first company to announce global policies (Dentist for Good) comes in. acids and strengthening teeth. for advertising to children*, with three main Sponsored by Trident chewing focus areas: gum since 2006, Dentista do Today, more than 70 percent of our gum Bem provides free dental services, worldwide is sugar-free. In addition, our Trident • We don’t advertise to children under including reconstruction and Xtra Care and Trident Total sugar-free gums, age 6 (long-standing policy). preventive treatment, to available in several countries, contain the underprivileged children— • For children ages 6 through 11, we only proprietary ingredient Recaldent. Research has until they reach the age of 18. advertise those products that meet shown that chewing a Recaldent-containing In 2010, 15,000 children received specific nutrition criteria. gum—versus a regular sugar-free gum—helps free dental care—and now are proudly showing their smiles. strengthen teeth by actively promoting tooth • We don’t advertise in primary or re-mineralization and protecting against tooth secondary schools. decay. People want healthy teeth and they want them to look good, too. Our sugar-free Trident White gum has been clinically shown to help * In late 2010, the legacy Cadbury business began implementing these provisions and will be in full compliance by January 2012.

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products policies p artnerships Our practices have become the model for how Our labels list the amount of each nutrient and what many other companies advertise to in a given portion of the product and/or per children. We were a founding member of the 100 grams or milliliters, depending on local International Food & Beverage Alliance, and, regulations. In most cases, our labels also “Market along with other members, made a global include the percentage that each nutrient commitment to the World Health Organization provides of the recommended daily value (DV), responsibly.” to advertise only products that meet specific daily intake (DI) or guideline daily amounts nutrition criteria to children under age 12 and to (GDAs)—or the local equivalent where available. Kraft Foods Code of Conduct, Rule 2 monitor our efforts. We’ve made similar pledges in Australia, Brazil, Canada, India, Mexico, We’re also pursuing front-of-pack labeling that Russia, South Africa, Turkey, U.S. and all EU delivers meaningful information at a glance, and countries. Implementing pledges at the national are increasing our front-of-pack labeling around level encourages local companies to follow our the world. In Australia and the EU, we provide lead and to improve the types of products they front-of-pack information on calories, based on advertise to children as well. the percentage of DI and percentage of GDA, respectively. In the U.S., we support Nutrition Product Labeling Since 2007, we’ve Keys a front-of-pack program, developed by the provided nutrition labeling on products Grocery Manufacturers Association and Food worldwide. Marketing Institute. And in Asia Pacific, ew are currently exploring front-of-pack options with Following the recommendations of the Codex the broader food industry. Alimentarius, a set of globally recognized, widely used food standards, our labels provide information on calories plus seven key nutrients where space permits: protein, carbohydrates, sugar, fat, saturated fat, fiber and sodium. On very small packages and others with limited space, we list calories, protein, carbohydrates and total fat, per Codex recommendations.

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health and well-being

products policies p artnerships We also provide nutrition information online Partnerships: Together and via toll-free consumer call centers. Our we can make it happen Healthy Living websites in several countries offer lifestyle tips and recipes. And in the U.S., It takes all sectors of society to successfully our Good Eating, Good Living website provides fight global hunger, obesity and the underlying information for people living with diabetes. causes of malnutrition. So, in communities We also provide this information in Spanish throughout the world, we’re working with at our comidakraft.com website. nongovernmental organizations (NGOs) Delicious @ Work that demonstrate they know how to make Whether it’s a hard-to-reach rural As we develop and assess our policies, we a real difference. area or an urban neighborhood engage with other organizations. For example, without a grocery store, the Kraft we have participated in consultations with the Our partnerships are built on a long history. Foods Mobile Pantry program is World Health Organization on the subjects of And in 2009, Kraft Foods and its Foundation making a difference for families renewed their commitment, providing living in the U.S. “food deserts.” sodium intake and advertising to children. In Brazil, we’ve facilitated conversations among $180 million of cash and food over three years In 2009, our company and our technology and nutrition teams and to leading community organizations that help Foundation pledged $4.5 million leading nutritionists and health professionals meet immediate needs and create long-term over three years to Feeding America. change. These partners work to give families a The mobile pantry program is on local nutritional needs. In Europe, our bringing more food—and better biscuit research and development teams take “hand up” rather than a “handout” by providing nutrition—to children and families part in global forums on whole grains with key the nutrition education and economic who need it most. nutrition and public health leaders, including empowerment to create lasting change. The fleet of 25 mobile pantry trucks the European Nutrition Congress and brings fresh produce, protein and HEALTHGRAIN Forum. Whether it’s helping farmers grow and sell dairy products into communities their cocoa crops or teaching families the where access to food is challenging. And our own Worldwide Health & Wellness fundamentals of good nutrition, together They’ll deliver 50 million meals over Advisory Council informs our work and helps with our partners, we are providing the three years. guide our efforts in providing consumers with necessary tools that empower communities www.feedingamerica.org more choices to meet their needs in health to successfully combat hunger and related and well-being. health issues themselves.

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products policies p artnerships Partnerships on the frontlines of • Empowering local food entrepreneurs— fighting hunger and malnutrition We know that when women earn income, 90 percent of it gets reinvested into families. “ If women in rural areas had Indonesia and Bangladesh rank fifth and sixth, So to help break the cycle of poverty, we’re respectively, for the highest rates of chronic the same access to land, helping women operate mobile retail stores child malnutrition. So in 2010, our company (bikes or carts) that sell nutritious foods, technology, financial services, and Foundation entered a five-year public- education and markets as soap and agricultural supplies. This helps the private partnership with the World Food women make a living while bringing needed men, agricultural production Programme to tackle the root causes of products and supplies to their communities. could be increased and the malnutrition. Called Project Laser Beam, our number of hungry people part of the program has three components: • Encouraging lifelong healthy habits— In addition to working with farmers reduced by 100–150 million.” • Supporting local farming—Given that and entrepreneurs, we’re also training The State of Food and Agriculture, nearly 75 percent of families facing hunger community leaders to deliver nutrition 2010–2011 live in rural areas, often the most immediate education at schools and other places where families gather. www.fao.org solution is to support local agriculture. To that end, Project Laser Beam is helping to establish women-operated rural farms that grow vegetables and raise livestock. By giving women access to seeds, fertilizers and credit, we equip them to provide food for their families and offer a chance for long-term income.

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health and well-being

products policies p artnerships Our Foundation has been working with Save In China, since 2009, we’ve built 100 the Children since 2009 to help malnourished “Kraft Hope Kitchens” in five rural Chinese families in Southeast Asia. Today, they’re provinces in partnership with the China Youth working in Indonesia and the Philippines to Development Foundation. When we launched tackle malnutrition by teaching healthy eating the program, surveys showed nearly 70 percent and hygiene habits. of students at these schools felt hungry during the day and more than 30 percent sometimes • Indonesia: With the help of Save the couldn’t get enough to eat. The kitchens Children, the Foundation is working through provide children hot, safely prepared foods. They a unique system of female volunteers who provide teachers, parents and staff with new consider it a privilege to help other mothers skills for nutritious cooking and safe food and kids in their communities. Children and handling. By the end of 2010, we had helped Delicious @ Work their moms are learning nutrition practices thousands of children get hot, nutritious meals. and taking those lessons home so the whole More than that, we are giving them—and their When Amy Abing came to Save the family eats better. And it’s working. The villages—a start toward long-term health. Children’s gardening training in the Philippines, she seemed discouraged government is expanding the program. and malnourished. A single mother • Philippines: Our Foundation is also working with a kidney ailment, she earns $8 a month. Timidly, she said there to help mothers set up and maintain urban were miserable days when she and vegetable gardens. With very limited space, her two children missed meals. they use recycled plastic containers to grow local crops, such as pechay, kangkong and At the class, sponsored by the Kraft Foods Foundation, Amy learned labanos. This program won the 2010 Asian how to plant and maintain an urban Corporate Social Responsibility Award. garden. From her small plot, she now feeds her two daughters and even has a little left over to sell to neighbors. “Nowadays, my children and I eat cooked rice with boiled vegetables dipped in vinegar with salt and sliced onions,” she boasts. www.savethechildren.org

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health and well-being

products policies p artnerships Partnerships promoting • U.S.: Our Foundation works with The healthy lifestyles National Latino Children’s Institute (NLCI) and the YMCA of the USA (Y-USA) to “ 38 percent of Hispanic kids Just as we’re working with others to fight address the obesity epidemic among Latino hunger, we’re also partnering to help families children in the U.S. In 2002, we partnered ages 2 to 19 are overweight get healthy. or obese, compared with with NLCI on a program called Salsa, Sabor y 32 percent of other kids the Salud (“Food, Fun and Fitness”). Created by • U.S.: Millions of Americans live in “food Latinos for Latinos, this program engages same age.” deserts,” and many families must travel whole families to eat healthier food and long distances to reach stores that sell increase their physical activity. Now our Journal of the American Medical fresh produce and other foods necessary to Association, 2010 Foundation is working with the Y-USA to maintain a healthy diet. The Food Trust is our expand Salsa, Sabor y Salud into 130 www.ama-assn.org Foundation’s partner to increase access to communities nationwide. fresh foods at local supermarkets, with the aim of ultimately reducing the prevalence of • UK and Russia: Childhood obesity is on obesity and other diet-related issues in the rise in both of these countries. In 2004, underserved communities. The Food Trust we launched an initiative in the UK with advocates policies that bring new stores education experts called health4schools. offering fresh foods to help build healthier It’s an award-winning program that teaches communities. In 2008, we began working children to grow vegetables, prepare healthy with the Food Trust in Illinois. And we’re now salads and play active games. After the UK expanding to four more states: Georgia, launch, we quickly realized that Russian kids Massachusetts, Minnesota and Texas. could benefit as well. So, our Foundation partnered with the Charities Aid Foundation to help families make smarter food choices and become more physically active. Health4schools has also enabled several Russian schools to upgrade cafeterias and purchase new gym equipment.

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products policies p artnerships • Brazil: The country’s most prominent charity Working toward the day helped us understand that malnutrition is when everyone can eat pervasive in the favelas (urban slums) and remote rural regions of Brazil. Poor children delicious and live well don’t have enough to eat and often get sick Challenges don’t come much bigger than from parasites in the soil and water. With global hunger and obesity. Solving them INMED Partnerships for Children, the Kraft takes collaboration. We’re doing our part by Foods Foundation introduced a school-based increasing the number of “better choice” health program that teaches children to grow options in our product portfolio to help fresh produce for their schools and the consumers as they strive to eat better; following surrounding community. Moms are starting marketing and communications policies that Delicious @ Work their own gardens and cooking healthier help people make informed choices and meals. And school food workers are learning understand how our foods fit into a balanced At a small school in Brazil, the play about food safety and nutritious cooking. The diet; and partnering with others to take action is the thing. Students producing a retelling of Little Red Riding program also supports low-cost, low-tech and get the results that enable lasting change. Hood cast the Big Bad Wolf as water purification, along with treatment for We’ll continue working to help speed progress a vegetarian who wanted to eat children with intestinal parasites and anemia. toward the day when everyone in the world eats the vegetable garden. delicious and lives well. One boy, normally shy and stunted from malnutrition, joined in like never before. His kinetic enthusiasm galvanized the class as he transformed into a natural leader. “We were caught off guard by how strongly the Health in Action program with INMED Partnerships for Children hooked the kids to think about nutrition in a fun way,” observed a member of our visiting team. www.inmed.org

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sustainability

Sustainability: Sustainability is about conducting business in a way that is environmentally, socially and economically responsible. It’s about living NOW AND today, while being mindful of tomorrow. The demands being placed on the planet are growing. Experts predict that the world’s FOR FUTURE population will reach just about 9 billion by 2050. And standards of living are expanding in much of the developing world. These GENERATIONS developments put incremental strain on the planet. In some areas, experts find that natural resources are being depleted faster than the earth can replenish them. Clean water and arable land are becoming scarce. Clearly, we must think and behave differently.

As a food company, Kraft Foods is dependent on the earth for the raw materials we use every day to make our products. We are changing the way we do business to become more sustainable. Given the size and complexity of the issues, “Development that meets the needs of the we’re partnering with others—peer companies, present without compromising the ability of governments, NGOs, farmers, suppliers and future generations to meet their own needs.” consumers—to find innovative, scalable solutions.

United Nations–sponsored Brundtland Commission Report

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sustainability

us impro nuo vem By the end of 2015, using 2010 as our base nti en Six areas of focus co t year, we plan to*: Sustainability is a strategic business priority for

TRANSPORTATION/ AGRICULTURAL Kraft Foods. We focus on areas that matter • Increase sustainable sourcing** of DISTRIBUTION COMMODITIES most to our business and where we can make agricultural commodities by 25 percent. the biggest impact. Our “Sustainability Wheel” represents our focus areas and serves as our • Eliminate 50,000 metric tons (100 million pounds) of packaging material. WASTE design PACKAGING framework for building sustainability into everything we do. We use the wheel to measure • Reduce energy use in our manufacturing and reward improvement. Our six areas of focus plants by 15 percent. are: agricultural commodities, packaging, energy, water, waste and transportation/distribution. • Reduce energy-related carbon dioxide WATER ENERGY emissions in our manufacturing plants In 2006, we set aggressive five-year goals*.I n by 15 percent. 2010, after integrating the Cadbury and LU • Reduce water consumption in our businesses and looking to continuously improve Sustainability Wheel manufacturing plants by 15 percent. upon our successes, we expanded our initial • Six areas of focus. goals. For our 2011–2015 goals, we’ve added • Reduce waste at our manufacturing • Design in sustainability upfront. sustainable agriculture and transportation plants by 15 percent. • Continuously improve going forward. to what we’re measuring. • Reduce 80.5 million kilometers (50 million miles) from our transportation network.

*Measured against total production **“Sustainably sourced” defined as third-party certification or verification

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04 Understanding our impact We also use environmental management 20 1: 00 4 1 systems in our manufacturing facilities O S I The more we can see and understand the

worldwide. In 2010, DNV, a leading global potential impact our actions may have, the registrar for ISO, certified that our systems met more effective our efforts can be. To improve the requirements of ISO 14001, the premier upon what we’ve done, we seek third-party international standard for environmental insight, which helps us evaluate our progress management. ISO 14001 provides a framework and determine where to improve or adjust. for continuous improvement within our facilities. A key advisor is Environmental Resources Cadbury plants, which we acquired in 2010, Management (ERM), an independent global were not included in the current ISO 14001 environmental management and technical certification. We are revising our environmental consulting firm. RE M has verified the management systems to provide consistent environmental performance indicators for standards for all our facilities. our manufacturing facilities that we report in the following pages.

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A gricultural Sustainably grown for Commodities Our growing role in driving sustainable agriculture our consumers For Kraft Foods, sustainability starts at the farm. Buying certified commodities is a powerful Sustainable agriculture promotes the long-term means of promoting sustainable farming, viability of crops, the preservation of fertile supporting farmers and enabling consumers to soil, the economic well-being of farmers and make informed choices. Our goal is to increase farming communities, and the health of sustainable sourcing of agricultural commodities ecosystems. As one of the world’s largest by 25 percent by 2015. purchasers of cocoa, coffee, cashews and other commodities, we can influence the future of We’re working to help bring more products to those crops and the communities that grow market that have sustainably grown ingredients. them. We’re partnering with other companies, In a different way, certification addresses the governments and NGOs around the world to three pillars of sustainability—social, economic increase our support of sustainable farming. and environment—by setting standards farmers must meet and helping them to command a The crops we buy often tell a story of family premium for their crops. The ultimate goals of these standards include decent wages, access These Kraft Foods brands have product farming. Whether it’s coffee, cocoa, cashews to health care and education for farming lines that carry Fairtrade or Rainforest or many of the other crops we buy, a large Alliance certification seals. portion of them come from developing communities; reductions in water pollution, countries. And a variety of circumstances, soil erosion and excessive pesticide use; and The Côte d’Or chocolate business more. Smarter farming can lead to healthier received the 2010 Rainforest Alliance such as political unrest, poor soil conditions, Sustainable Standard-Setters award lack of infrastructure and more, contribute to farm communities and better quality crops. for its strong commitment to improve the challenges faced by farmers. That’s why the environment and support local we have supported farming communities and communities. sustainable agriculture programs for years.

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A gricultural In 2010, we continued to be the largest buyer • In Ghana, we’ve quadrupled the volume of Commodities of coffee from Rainforest Alliance Certified cocoa sold under Fairtrade terms, resulting farms and the largest buyer of cocoa beans in £2.3 million ($3.7 million) in Fairtrade from certified Fairtrade or Rainforest Alliance social premiums. Communities have used farms. Here’s how that support is making the premiums to purchase mobile health a difference: clinics, farm equipment, farm-skills training and more. • In 2010, our purchases of Rainforest • In the Daloa region of Côte d’Ivoire, one of Alliance Certified coffee helped support the farm cooperatives we work with used a more than 430,000 workers tending more portion of its premium from selling Rainforest than 85,500 hectares (210,000 acres) Alliance Certified cocoa to build a small in 12 countries in Africa, Central America, health-care facility staffed by government- Delicious @ Work South America and Southeast Asia. assigned health professionals. For the first Our Canadian confectionery team • We’re helping farmers through the Cocoa time, farmers and their families can find created The Bicycle Factory in 2009, to rally Canadians to send much- Partnership, the £45 million ($72 million), local treatment for ailments, such as malaria, needed bicycles to the school kids in 10-year commitment to cocoa farmers in and mothers can deliver their babies close our cocoa-growing communities in the Dominican Republic, Ghana, India and to home. Ghana to help increase their access Indonesia launched by our Cadbury team to education. in 2008. The program is based on the simple notion that ”small purchases can make a big difference for people in need.” Each Universal Product Code from any participating item entered at www.thebicyclefactory.ca turns into a virtual bike part. For every 100 virtual bike parts, one real bike gets sent to Ghana. The campaign has delivered more than 9,000 bikes in 120 communities.

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A gricultural The Power of Working With Others By joining these Gates Foundation initiatives, Commodities we hope to help break the cycle of poverty Another way we support sustainable agriculture for 200,000 cocoa farmers and 150,000 is by taking part in industry programs that cashew farmers. And the results are starting development in commodity-producing Delicious @ Work to materialize. In 2010, we purchased communities. By collectively working with others, 1,000 metric tons (2.2 million pounds) of Other examples of partnering: we can make a greater impact. cashews that were grown sustainably and • In 2009, we joined the World processed in sub-Saharan Africa. Economic Forum’s initiative called In early 2009, we joined industry, government New Vision for Agriculture. The goal and nongovernmental partners in two Bill & of the initiative is to define ways to Cultivating a more responsible provide food security for all in an Melinda Gates Foundation initiatives that are environmentally sustainable way investing $90 million over five years to advance agricultural supply chain while generating economic growth. sustainable production of cocoa and cashews Many crops we buy come from areas faced in West Africa. • We are a founding member with political issues or traditions that are not in and financial supporter of the line with our sourcing standards. In order for us 4C Association. This coalition of • The World Cocoa Foundation manages the to source in a way that meets our standards, we producers, trade, industry and NGOs first initiative, called the Cocoa Livelihoods work with others to address such concerns as: aims to help farmers lower costs, Program, and is providing $40 million in improve quality and efficiency, and cash and related support to increase the gain access to markets and credit. COCOA LABOR ISSUES Kraft Foods is involved incomes of small-scale cocoa farmers in in substantial efforts to address forced labor • We’ve also joined the World Cocoa Cameroon, Côte d’Ivoire, Ghana, Liberia Foundation and USAID in creating and the worst forms of child labor in cocoa and Nigeria. a program called ECHOES, which farming. While we don’t own or control any strengthens cocoa-growing • Deutsche Gesellschaft für Technische farms, we have worked since 2001 with communities in Côte d’Ivoire and Ghana by training young people and Zusammenarbeit (GTZ) GmbH manages the governments of the Côte d’Ivoire, Ghana teachers in vocational agriculture. the second program, the African Cashew and the U.S., and our peer companies, to Through ECHOES, we’ve helped Initiative, which is providing about enhance education, support economic train more than 5,200 students and $50 million in cash and other support development and promote responsible more than 7,100 teachers. to train producers in Benin, Burkina Faso, labor practices. For more examples, see Nourishing Côte d’Ivoire, Ghana and Mozambique. Our Agricultural Supply Chain.

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A gricultural PALM OIL AND DEFORESTATION Palm oil is ANIMAL WELFARE We understand that there Commodities used in a large variety of products worldwide is concern about the welfare of animals raised and demand is growing. That demand, for food. We expect our facilities and those of combined with uncontrolled harvesting and our direct suppliers that handle live animals to production practices that some producers meet all government regulations and industry employ, is contributing to deforestation in standards on animal welfare. the tropics. In the U.S., we adhere to science-based We support the goals and efforts of the standards developed by trade organizations like Roundtable on Sustainable Palm Oil (RSPO) the American Meat Institute, National Turkey Delicious @ Work and we buy from its members. Federation, United Egg Producers and National In France, we’re sourcing wheat in Chicken Council. Direct suppliers must a more integrated way to reduce the Our palm oil purchases amount to less than demonstrate compliance through annual environmental impact of farming. 0.6 percent of worldwide production. In 2010, audits conducted by a third party. In the EU, We’re using local and sustainably we began buying GreenPalm certificates our suppliers have to comply with established sourced wheat for LU biscuits. covering more than 25 percent of our palm oil animal welfare regulations as a condition of Nearly 700 farmers follow special purchases. GreenPalm is an RSPO-endorsed exporting goods to these countries. practices growing 8,000 hectares certificate-trading program that provides (20,000 acres) of wheat to limit their environmental impact. Farmers incentives to producers whose plantations The welfare of egg-laying hens is a concern have reserved parts of their fields for conform to its criteria. We also purchased for some consumers and customers. This bee-friendly flowers to help support segregated certified palm oil.U sing this year’s year in the U.S., we will purchase one million one million bees—encouraging purchases as a guide, we expect to be able to eggs from cage-free facilities. In the EU, pollination and biodiversity for cover 100 percent of our purchases once the we are transitioning away from battery cage future generations. supply of certified palm oil accounts for about eggs in accordance with regulations banning one-third of the world’s total supply. We expect the use of conventional cage systems by 2012. our suppliers to reach this goal by 2015.

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Packaging Smarter packaging post-consumer recycled material in a given package design, along with the amount of Packaging is one of the first and last energy and carbon dioxide emissions required experiences consumers have with our products. to create the package. The Eco-Calculator also That’s why we’ve taken a comprehensive tells packaging designers how efficiently they’re approach to packaging—one that cuts waste, using materials and how well their designs will conserves natural resources and gives users fit our products’ physical dimensions.T he tool a more satisfying experience. is used along with other business practices, like economic assessments and ability to Between 2005 and 2010, we cut nearly manufacture, in deciding a final design. 100,000 metric tons (200 million pounds) of packaging from our supply chain. We’re working Delicious @ Work Examples of other recent packaging reductions, to eliminate another 50,000 metric tons based on annual totals, include: Kenco coffee refill pouch (100 million pounds) by 2015. Reductions like 97 percent less packaging the 20 percent we cut from packaging for LU • U.S.: Instant Maxwell House coffee jar compared to the glass jar, formerly Le Petit Ecolier biscuits in France in 2010 are the product’s sole container. material change—6,500 metric tons helping us on our way. (14.4 million pounds). Oscar Mayer Deli Creations 30 percent less paperboard; Key to our reduction in packaging is our • U.S.: Planters peanuts shipper reduction— eliminating 544 metric tons Packaging Eco-Calculator™. It’s a tool we 1,225 metric tons (2.7 million pounds). (1.2 million pounds) of packaging. invented to help our packaging developers • Central and Eastern Europe, Middle East and chocolate bars create more efficient, sustainable solutions Africa: Tang powdered beverage can material 60 percent less packaging weight based on data from the U.S. Environmental change—500 metric tons (1.1 million pounds). from fewer layers; saving 2,600 Protection Agency, the U.S. Department of metric tons (5.7 million pounds) in • EU: chocolate tablets film layer Europe and rolling out the process Energy and packaging industry groups. The in Latin America. Eco-Calculator figures the percentage of reduction—145 metric tons (320,000 pounds).

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Packaging Besides improving the design in some of our In 2008 and 2009, we were the official food packaging, we’re also using more sustainable sponsor of Recyclebank®, a company that materials. In North America, the majority of rewards consumers for recycling. Currently, people can recycle more than 70 percent our Back to Nature brand is participating in (by weight) of our packaging. Most is made the Recyclebank Partners in Purpose campaign, from paper, a renewable material. which aims to educate consumers on how to make smarter, greener shopping choices. For consumers, governments and trading We’re also collaborating with industry packaging partners, having a universally accepted organizations in Australia, Europe, Latin America definition for sustainable packaging—along and elsewhere to boost recycling rates. with metrics to measure progress—is important. That’s why we’re co-leading The Consumer Goods Forum’s Global Packaging Project with Global Packaging Reduction the aim of arriving at a common definition of Weight (MT) Eliminated Since 2005 sustainable packaging and consistent metrics.

100,000 MT RECYCLING Packaging has little benefit if consumers don’t recycle. To increase recycling rates, we’re using more recycled content in much of our packaging and partnering with others on education campaigns. 2005 2006 2007 2008 2009 2010

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Energy Reducing energy to help In addition to reducing energy combat climate change consumption, we’re also eliminating our use of chlorofluorocarbons (CFCs) In light of concerns over climate change, and hydrofluorocarbons HF( Cs), which we’re looking across our supply chain at have been linked to global warming and what’s directly and indirectly under our deterioration of the ozone. By the end of control. To address our direct impacts, we 2010, we met our goal to eliminate CFCs. monitor manufacturing and our transportation And, we’re making great progress toward fleet. For our indirect impacts, we focus on our goal to eliminate HFCs by 2020. our agricultural commodity purchases and transportation operations. Applying a In 2010, we joined our fellow board members pragmatic approach allows us to concentrate in supporting The Consumer Goods Forum’s on areas we need to understand better and resolutions to fight climate change by Delicious @ Work where we can be most effective. addressing deforestation and promoting Our manufacturing plants account sustainable refrigeration. We resolved to do our for 92 percent of our electrical From 2005 to 2010, we reduced our energy part in achieving the Forum’s goal of assisting consumption. By reducing electricity use by 16 percent and our energy-related countries to achieve net-zero deforestation. use, we save fossil fuel burned to carbon dioxide emissions by 18 percent. By generate power and the resulting greenhouse gases. 2015, we’re aiming to reduce our energy use In December 2010, we signed the Cancun and energy-related carbon dioxide emissions Communiqué on Climate Change, which by an additional 15 percent each. We’re builds on the progress of the Copenhagen making progress by changing our operations, Communiqué, that we joined in 2009. Like its improving facilities and training employees to predecessor, the Cancun Communiqué aligns modify their behavior. We’re also investing directly with our view that the United Nations in new technologies for lighting, heating, climate framework agreement makes sense refrigeration, processing and packaging. for society generally and will ultimately benefit our business.

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Energy Finding innovative solutions We invest in energy savings in our office for our energy needs buildings and distribution centers, too. In 2009, our corporate headquarters campus in One way we’re reducing the percentage of Northfield,I llinois, U.S., earned the Energy Star fossil fuels we consume is by tapping into rating from the U.S. Environmental Protection alternate energy sources. Sometimes a viable Agency. Elsewhere, several of our buildings in source exists right in our factories. For example, Australia, Brazil, the Philippines and Switzerland at our Lowville, New York, U.S., plant, we’ve also have strong efficiency records. discovered that by treating whey, a natural by-product of cheese-making, in an anaerobic “digester,” we can produce enough methane Global Manufacturing Energy Consumption Delicious @ Work to replace about 30 percent of the natural (gj/ton) and CO2 Emissions (kg/ton) gas the plant uses annually. Reclaiming whey % Change Since 2005 Known as the Lightcube, our eliminates the need for disposal, saving diesel building in Zurich is one of our most fuel and carbon dioxide emissions. It also -16% energy-efficient facilities.I t uses less -18% energy—50 percent for lighting and results in cleaner wastewater. We’re exploring 60 percent for ventilation—than ways to convert whey to energy across our comparably sized facilities. dairy-products network. 2005 2006 2007 2008 2009 2010 At some of our plants, we’re exploring different

ways to save energy generated from fossil fuels Global manufacturing energy consumption CO2 emissions and implement innovative solutions. Some factories are using coffee grounds to generate energy, while our plant in Induri, India, uses bagasse, the waste from the local sugar industry. We’re reclaiming oven heat and using solar energy to heat water. We’re experimenting with wind turbines on factory roofs and improving control of our utilities. And we’re simply remembering to turn off the lights.

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Water Watching our water use • Our Puebla, Mexico, plant treats its wastewater on site and supplies the local A growing global population is making more authorities with clean water—free of charge— demands on the planet’s water supply, so for irrigating the city’s green spaces. conservation is needed around the world. • We treat the wastewater from our Chirk, UK, We’ve reduced water consumption in our plant on site and reuse it in boilers, cooling manufacturing facilities by 30 percent since towers and other ways that do not bring the 2005. With a goal to reduce water use an water into contact with food. As a result, additional 15 percent by 2015, we’re reusing it, we’ve reduced freshwater consumption at improving processes, maintaining equipment Chirk by 20 percent. and educating employees. • At our Cieszyn, Poland, facility, we’ve reduced water use by 39 percent since 2005 through Delicious @ Work We’re working with global experts to estimate continuous improvement efforts. the amount of water used in our factories, as Looking to reduce water use at well as the “water footprint” of the ingredients • We reduced water at our Hemelingen, our Vegemite spread plant in Port and packaging materials we purchase and the Germany, plant in 2009 by 19 percent Melbourne, Australia, the team compared with the previous year through consolidated manufacturing water used in our factories. processes and made innovative improvements to the cleaning process. changes. The results: Other examples of how we’re conserving • 58 percent reduction in and reusing water around the world: water needs. Global Manufacturing Water • At our Ringwood plant in Melbourne, Consumption (m3/ton) • 52 percent decrease in energy Australia, we’ve installed a rainwater % Change Since 2005 consumption. harvesting system and use the captured • More than 65 percent elimination rainwater in our boilers and cooling towers. of wastewater discharge. When we have more than we can use, we -30% • Recovered and treated wastewater supply a neighboring school with water to streams for use in building local irrigate its playing field. roads, saving about one million 2005 2006 2007 2008 2009 2010 liters (264,200 gallons) of potable water per month.

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Waste Redefining waste Global Manufacturing Waste We’ve reduced net waste from our Generation (kg/ton) manufacturing plants by 42 percent from % Change Since 2005 Delicious @ Work 2005 levels. By 2015, our goal is to reduce waste by an additional 15 percent. Our We have 26 plants in nine strategy is simple: Generate less waste and -42% countries that have hit zero waste-to-landfill status. find new uses for the waste we do produce.

Austria Norway Solid waste generated from manufacturing 2005 2006 2007 2008 2009 2010 Bludenz Oslo accounts for more than 99 percent of our Vienna Sweden total waste. We recycle or reuse about Belgium Gavle 90 percent of our manufacturing waste. Halle In some cases, we’re using manufacturing Herentals Switzerland Bern by-products as energy sources. Canada (Ontario) East York United States In 2007, we launched a pilot program with Mississauga Bethlehem, PA Sonoco, a global packaging and recycling Scarborough Fair Lawn, NJ New Ulm, MN company, to substantially reduce waste in France Oakville, CA our plants. Our objective: to send zero waste Cestas Philadelphia, PA to landfills. Laverune Suffolk, VA Toulouse

Germany Berlin Donauwörth Elmshorn Fallingbostel Hemelingen Holzhafen Lörrach

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Waste TURNING TRASH INTO USEFUL PRODUCTS We also send post-manufacturing waste to Seventy percent of our North American TerraCycle. That post-manufacturing waste, packaging is recyclable. For the remaining combined with what the brigades collect, 30 percent that can’t be recycled, we’re has enabled us to keep nearly 3.7 metric tons working to find alternatives to address its (8,100 pounds) of waste from 800 million end of life. One alternative is to use it a second packages from going to landfills. time, or upcycle. In 2007, we partnered with TerraCycle™, a company that collects post- consumer and post-industrial packaging and turns the waste into merchandise.

The system uses collection brigades that are typically run out of community centers, schools and youth groups. Kraft Foods compensates the collection teams for each package they collect and send in.

Today, Kraft Foods is the largest sponsor of These Kraft Foods brands participate TerraCycle, supporting the organization in in the TerraCycle™ program. Argentina, Brazil, Canada, Ireland, Mexico, Sweden, the UK and the U.S. with more than 85,000 brigades and an estimated 12 million people collecting waste worldwide.

As a result of their efforts, brigades received approximately $1.6 million in charitable donations in 2010. The organizations use the money they receive to buy equipment and supplies or donate it to their charities of choice.

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Transportation/ Moving products more efficiently Another solution is to use alternative modes of Distribution transportation. By shipping wheat to our Toledo, Improving our global transportation and Ohio, U.S., facility by waterway rather than road, distribution network so that we move products we’ve replaced 10,000 truck shipments that and raw materials more efficiently saves truck have cut nearly 2,000 metric tons (4 million fuel, cuts carbon dioxide emissions and pounds) of emissions. In Brazil, in just six reduces traffic.S ince 2005, improved internal months of shipping by water, we cut 125 truck processes, along with our collaborations with shipments—390,000 kilometers (242,000 customers and suppliers, have eliminated miles) and 300 metric tons (more than approximately 97 million kilometers (about 600,000 pounds) of carbon dioxide emissions. 60 million road miles). By 2015, our goal Delicious @ Work is to eliminate another 80 million kilometers The right technology makes a difference. As members of the U.S. (50 million road miles) from our global We’re using the Oracle® Transportation Environmental Protection Agency’s transportation network. Management system to optimize truck SmartWaySM Transport Partnership, movements and reduce “empty miles” in our we’ve reduced truck idling, lowered Sometimes the answer is literally right under U.S. operations. Similarly, the AutoVLB software our corporate speed limit and our feet, as in our underground refrigerated- from Transportation/Warehouse Optimization equipped our trucks with fuel-saving enables us to improve payload by configuring technology. We’ve also adopted storage facility built into the natural limestone other strategies that enable our caves at Springfield, Missouri, U.S. Not only loads with a mixture of heavy and light products, trucking operations and those of our do the naturally cool caves require 65 percent eliminating more than 9,000 truck shipments freight carriers to use less fuel and less energy than conventional storage facilities, and 9.6 million kilometers (6 million miles). emit fewer greenhouse gases. their large size and central location enable us In 2009, we were one of just five to consolidate inventory and transport our consumer products companies to products to our customers more efficiently. earn the SmartWay Excellence Award. That’s an annual savings of 680,000 liters (180,000 gallons) of fuel, 1,800 metric tons (4 million pounds) of carbon dioxide emissions and more than 1.6 million kilometers (one million miles) of truck travel.

www.epa.gov/smartway

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Being more transparent companies that demonstrate good internal in our efforts data management practices for understanding greenhouse gas emissions, including It’s important to do the right things for current energy use. and future generations. It’s equally important to show what we’re doing. That’s why we participate In 2010 we were listed on the Dow Jones in internationally recognized indices. Sustainability World Index for the fifth straight year, the Dow Jones Sustainability North As an example, we’ve been a part of the Carbon America Index for the sixth year and listed Disclosure Project (CDP) since 2005. From the as a CII Leader by Maplecroft Climate beginning of our participation, we have formally Innovation Indexes (CII), placing us in the reported Scope 1 and Scope 2 emissions. In 100 top-performing companies in Maplecroft’s 2009, we began reporting on a portion of benchmarking of the largest 350 U.S. companies. Scope 3. Cadbury, which we acquired in 2010, had also reported to the CDP since 2005, appearing regularly in its leadership index. Focusing on sustainability In 2010, we submitted a combined report to We all have a role to play in caring for people, the CDP that included emission data from land and resources that touch our daily lives. We both legacy Cadbury and Kraft Foods. Our can’t do everything. But we can work to make a carbon-emissions profile is available on the difference in the areas where we’re big and that CDP website. are big to us. And that’s why we’ve taken a strategic approach to our sustainability efforts. In 2010, we were recognized for our efforts to reduce energy consumption and carbon Our accomplishments to date are increasing emissions in two important ways. First, the sustainable sourcing of agricultural commodities, Carbon Disclosure Project listed us in its 2010 cutting packaging materials, reducing energy Carbon Disclosure Leadership Index for the and water use, finding new productive uses for first time, ranking us among the top-scoring our waste and smarter distribution of our 10 percent of Global 500 and S&P 500 products. Every step, no matter the size, is a companies that report emissions to the CDP. step in the right direction. Can a company do We’re the only U.S.-based food company to well by doing good? We say yes! be listed on the global index, which recognizes

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f ood SafETY and Quality

Food Safety and Quality: Providing food and beverage choices that are safe is paramount to our success. It’s the core of our heritage and an essential part of our culture. Maintaining trust means offering quality BETTER PRACTICES products that people can rely on and feel good about serving to their family and friends.

DELIVER THE BEST Setting and ensuring others follow high standards RESULTS We employ a comprehensive, quality chain management system to ensure that our food is safe. It’s based on ISO 9001:2000, an internationally recognized family of quality management standards. In addition, we supplement the ISO standards with safety and quality standards developed specifically for our business. We also work with governments and industry partners around the world to share learnings because we know that all food safety issues, even when they are not ours, can shake “Make food that is safe to eat.” consumer trust.

Kraft Foods Code of Conduct, Rule 1 For example, several years ago, we announced a new ingredient technology that helped inhibit the growth of Listeria in cooked meats. To expedite industry knowledge and use of this food safety innovation, we shared the technology with the meat industry and published the information to make it widely available.

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Similarly, in 2010, Kraft Foods led an industrywide will visit the site. Otherwise, we may work with Delicious @ Work initiative to create and publish guidance for the third-party auditors. In all cases, it’s critical that Driven by our philosophy of safe production of nuts and made it available to the auditors are properly trained, managed and continuous improvement, we nut suppliers and producers. adhere to a common set of criteria. regularly look at ways we can improve our supply chain to Our quality management system helps Suppliers that fall short of our standards must strengthen food safety. employees, suppliers and distributors around the take prompt, verified corrective action.I f they Recently, we began a program world understand our standards and expectations. don’t, we stop doing business with them until to periodically screen select raw We offer approximately 70 employee education they raise their standards to meet our materials for potential chemical programs, covering topics from sanitation to requirements. contaminants. We do this across the allergen control to packaging design. supply chain worldwide. Ingredient Equally as important as audits are our tools samples are tested on a scheduled basis and analyzed by a Kraft Foods- As a global leader in food safety, we have and programs for helping suppliers improve approved lab. Suppliers cannot ship well-defined safety and quality expectations their food safety and quality systems. We hold the ingredients to our facilities until for our suppliers worldwide and, before we use “lessons-learned” sessions, offer food safety test results confirm that they meet ingredients or raw materials, we have an audit and quality forums, and provide on-site quality our specifications. conducted of their facilities to make sure they consultations. meet our Supplier Quality Expectations. Over the last two years, we’ve hosted numerous These suppliers are audited every one to three Supplier Quality and Food Safety forums covering years thereafter by Kraft Foods or third-party Asia, Central and Eastern Europe, European auditors, based on risk. If a supplier handles Union, Middle East and Africa, and North food at a higher risk for contamination, or if America. We plan to continue these sessions. quality control is more challenging, our staff

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Taking action when needed Weighing the use of genetically Despite our vigilance, threats to safety and modified ingredients quality may arise. When something goes wrong, We believe genetically modified ingredients we respond quickly. Our Special Situations can play a role in food production. We also know Delicious @ Work Management Teams—senior-level managers consumers worldwide have different points of from across the company who have experience view about genetically modified ingredients. For We’ve helped build better food in handling these types of situations— production infrastructure in that reason, we review their opinions continually. Kyrgyzstan and developed products take immediate steps to protect consumers In 2010, our position did not change. for Benin. We’ve expanded the when there is a food safety issue. We have an offerings at a Vietnam cooking early-alert system and processes to fast-track When we choose to use genetically modified school for low-income consumers, information to our internal quality and consumer ingredients in our products, we do so based on helped to improve and extend safe managers, as well as our Special Situations a number of factors, including: distribution in Vanuatu, and helped Management Teams. Through training, an Ecuadorian charity raise money by selling artisan chocolates. employees in our manufacturing plants know • Fact-based scientific consensus about safety. exactly what steps to take when issues arise. Since 2001, we’ve sent more than • Consumer acceptance. 175 Kraft Foods scientists, engineers and other experts on 60 “missions” Alerting consumers to allergens • Local regulatory approval for use. with the United Nations Volunteers • Our own strict safety and quality criteria. programme. Our employees shared Some of our consumers have food allergies their expertise with nonprofits and that can be quite serious. We address allergen small businesses focused on concerns at critical points throughout our We follow all local regulatory requirements sustainable agriculture, food production production and our supply chain. We account regarding the use and labeling of genetically and community development. for the possible sources of major food allergens modified ingredients. We also support www.unv.org and identify them in common terms on appropriate regulation of genetically modified our labels. foods and ingredients to ensure the safety and integrity of the food supply and the protection of the environment.

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We have no safety concerns with the genetically Meeting expectations every Delicious @ Work modified ingredients currently on the market. step of the way We believe it’s important to listen This is based on conclusions reached by a and learn from our consumers. We majority of scientists and regulatory organizations, People, rightly, expect safe food. By adhering start by providing consumers with a including the Food and Agriculture Organization to strict standards, acting swiftly when threats to variety of channels to reach us: of the United Nations, the U.S. National safety arise and communicating with consumers effectively, we maintain and strengthen our • Contact points, including 18 major Academy of Sciences and the World Health global contact centers, in all Organization. reputation for consistently producing delicious countries where our products foods people can trust. are sold. Though scientists have reached consensus, • Contact details on all Kraft Foods consumers have not. For example, in the U.S., websites through Frequently Asked most consumers are not concerned about Questions (FAQs) and Contact Us. genetically modified foods.S o we use them • Social media, with nearly in most of our products there. But in Europe, 600 million fans of our various where many people don’t want genetically Facebook pages with more than modified ingredients, we don’t use them. 15 million Twitter followers. In countries where we don’t use genetically modified ingredients, our suppliers must Then, to help us respond better to provide documentation on the origin and consumer needs, our information preservation of all ingredients. analysts provide more than 1,000 monthly and quarterly analyses of consumer input to all brands and across multiple functions in Europe, Latin America and North America.

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Workplace and culture

W orkplACe and Culture: They invent new flavors. Make and sell our delicious products. Manage our company. And much more. Every day, our success depends on more than 125,000 capable, Becoming dedicated and diverse Kraft Foods employees around the world. Treating them well and providing a workplace that is safe, rewarding PERFORMANCE- and inclusive is our proven recipe for keeping great people and inspiring them to do DRIVEN, VALUES-LED good things. Starting with safety We work hard to keep all of our employees safe and strive for zero accidents in the workplace. We aim to get there by addressing the causes of injuries and by setting clear expectations that employees must follow all safety laws and guidelines, operate equipment properly and never use alcohol or illegal drugs in the workplace.

“Treat people fairly.” By doing this, we’ve made good progress. While this 2010 report includes safety data on Kraft Foods Code of Conduct, Rule 3 only our manufacturing facilities, by 2012, we’ll track and provide this data for all employees.

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Workplace and culture

Since 2005, we have reduced our lost-time Our Safety Policy sums up our approach well: accident rate by 32 percent in our manufacturing facilities. In 2010, 76 plants, including our • Safety and health improvements are both Cadbury facilities, completed a full year of an individual and team responsibility. operation without a reported lost-time accident. • Each of us must be dedicated to conducting That covers approximately one-third of our all activities with the highest concern for operating plants worldwide. Each facility employee safety and health. received a plaque for helping fulfill our vision of being a “safety perfect” organization. Facility • Each of us should participate in a local safety managers made the presentations at plant-wide program and actively seek to achieve an celebrations, recognizing all employees for their accident/injury-free work environment. role in this achievement. To achieve these commitments, we created Despite our progress, we clearly have more a new worldwide safety and environment work to do. Tragically, there were four employee management system in 2010. This system fatalities in 2010. Two employees in Philadelphia, brings together the best practices from legacy Pennsylvania, U.S., died due to workplace Cadbury and Kraft Foods. Our plan is to roll violence; an employee in Chicago, Illinois, U.S., out this system across the company. died on entering a palletizer; and an employee in India died due to a fall. Three members of the public—one each in the Dominican Lost-Time Accident Reduction Republic, UK and U.S.—also died as a result Since 2005* of traffic accidents while our employees were carrying out their duties.

0.78 We thoroughly investigated all events to -32% understand the root causes and to see if we needed to revise our safety policies 2005 2006 2007 2008 2009 2010 and processes. This focus on continuous *This chart shows the number of lost-time accidents per improvement is key to achieving our goal 100 full-time equivalent Kraft Foods employees per year. to keep all employees safe.

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Workplace and culture

Mixing in wellness We are also an active member of the World Economic Forum’s Workplace Wellness Alliance. We encourage and support our employees The Alliance brings together 39 multinational in having healthier lifestyles. We offer various companies from around the world that are health and well-being tools and resources committed to advancing wellness in the in many facilities around the world—and our workplace by improving the overall health goal is to expand these efforts each year. and well-being of their global workforce. Though these resources may differ based on local and cultural needs, they generally offer similar elements around nutritional, physical Folding in respect and mental well-being. Here are just a few We’re building an increasingly diverse workforce programs employees can take advantage of: and supplier base because we know that having different perspectives means better decision- • Lifestyle improvement programs, such as making. This approach also enables us to be stress management, weight management even closer to our diverse consumers. and smoking cessation. • Fitness and/or sports facilities on site, At Kraft Foods, to ensure everyone can incentives for gym membership and contribute to his or her fullest potential, we employee sports competitions. don’t permit discrimination or harassment based on age, race, disability, national origin, • Health screenings and exams, including religion, sex, sexual orientation or any other vaccinations and flu shots. legally protected status. • Healthier options and nutrition information in our cafeterias and canteens. • Newsletters/intranet sites that offer health tips and work-life and flex-time programs.

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Workplace and culture

Aligned with our value of “being open and Our global focus is on gender diversity. inclusive,” our global diversity and inclusion In the U.S., we also measure progress on strategies provide direction to our employees our representation of minorities. In 2010, worldwide. Our efforts focus on three strategic minorities accounted for 21.5 percent of areas: culture, partnerships and accountability: our U.S. workforce.

• Our culture requires that we communicate Others are recognizing us for advancing and openly, seek input from employees, and fostering an inclusive culture. For example, Delicious @ Work provide diversity and inclusion training for in 2010, DiversityInc named us one of its We’re working across our company employees at key career stages. “50 Best Companies.” Working Mother magazine has named us one of its “100 Best globally to hire, develop and retain • Partnerships are vital to our success. Companies” for several years running. And in more women. In 2010, 43 percent of Internally, our 10 employee resource groups, our salaried employees were women 2010, LATINA Style magazine rated us No. 8 made up of diverse employees around the and they made up 35 percent of our on its “50 Best Companies for Latinas” report— world, help us promote and drive diversity management team. up from No. 25 in 2009. and inclusion. External partnerships with organizations and associations that share We’ve looked beyond our four walls too. For our commitment to diversity and inclusion more than 25 years, Kraft Foods has invested help us accelerate the pace of change. in supplier diversity because it’s good business • Finally, in diversity, as in everything else, to explore a variety of purchasing options. we are accountable to each other to uphold Diverse suppliers have an equal opportunity our values. Since 2009, we have linked to work with Kraft Foods and its subsidiaries diversity and inclusion to executive incentive regardless of race, national origin or gender. compensation to increase our leaders’ accountability.

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Workplace and culture

Our supplier diversity team develops and Spicing it up with Delicious @ Work executes global strategies, in line with our talent development Supplier diversity examples in supplier diversity guidelines, to increase the North America: use of minority- and women-owned businesses. Like building great brands, increasing the skills We look to all of our suppliers for product and talents of our people takes time, energy In 2010, we began sourcing the • and service innovations at a competitive cost, and expertise … but done right, great brands and majority of adhesives for North American products from minority- without compromising quality or food safety. great people deliver great value for many years. owned Adhesive Systems, Inc., We also are stepping up efforts to ensure bringing capital investments and our suppliers use diverse suppliers. Our performance management program jobs to the Detroit, Michigan, creates a connection between our business metropolitan area. To help advance our supplier diversity efforts, strategies, our employees’ development and • We were one of the first companies we offer a supplier registration portal for the individual performance required for the to make a pledge to Chicago minority vendors certified by a third party, company’s success. We believe people’s United’s Five Forward Initiative™, such as the National Minority Supplier achievements are based on not only milestones demonstrating our commitment Development Council or Women’s Business and deliverables, but also their demonstration to growing relationships with five of Kraft Foods’ values. We are explicit in our local minority- and women-owned Enterprise National Council. Once registered, companies. As we’re making minority- and women-owned businesses receive expectations of our employees and draw the progress toward our goal, we’re notification of upcoming sourcing opportunities connection to creating a performance-driven, creating a win-win for our new and outreach events at Kraft Foods. values-led culture. business partners and Kraft Foods: --Cano Container Corporation, Everyone wins when we have a diverse Kraft Foods’ rigorous and consistent approach a Hispanic-owned supplier of workforce and a diverse supplier base. to all elements of performance management— corrugated boxes to Kraft Foods, goal setting, ongoing informal and formal more than doubled its warehouse performance feedback, development planning capacity in the Chicago suburban area. and assessment—provides a strong framework for managers and employees as they translate --CSMI, a minority- and women- owned engineering and design company strategies into the work they do consulting business in a Chicago every day. suburb, more than doubled its sales with Kraft Foods in the past year, which enabled the company to hire additional workers.

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Workplace and culture

Our performance management program sets Serving up a stronger company expectations; requires accountability; engages employees and managers in feedback, both Providing a safe, inclusive and rewarding informal and formal; and fosters development. workplace is critical for any company that hopes to innovate, grow and lead. In our journey toward We’re clear about what our employees need a culture driven by performance and led by to do to succeed—and we help them do it. values, we’re building a stronger company and Our leadership imperatives and competencies, place to work that attracts and retains the functional/technical competencies and career thinkers, problem-solvers and doers, who will help models, along with Kraft Foods’ values, provide define the food industry, for decades to come. the organization with a common language that describes expectations and development for Delicious @ Work employees. Our tools and training support the Making a delicious difference is elements of our performance management integral to our corporate culture process, including development planning. and values. Nearly 25,000 employees in 56 Through Kraft Foods’ global succession countries, including Chairman and planning program, we develop our next CEO Irene Rosenfeld, helped fight generation of leaders by determining hunger and promote healthy development actions that align with our lifestyles in their communities during Kraft Foods’ second annual Delicious business strategies and needs, the employees’ Difference Week. They planted capabilities and potential career opportunities. community gardens, built playgrounds, Our program drives consistency in how we assisted at food banks and served assess, develop and deploy our talent against nutritious meals to people in need. the roles most critical to Kraft Foods’ success. “I love the look in people’s eyes when they see you helping out. It makes you feel good,” said Sabrina Warner, serving at Chicago’s Inspiration Café, which provides free restaurant meals to the homeless and low-income residents.

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governance and compliance

Governance and Compliance: The trust of consumers, customers, communities, regulators, suppliers and, of course, employees is something we do not take for granted. We strive to earn that trust every day by doing what we say Inspiring trust we will do and holding ourselves accountable, even on the occasions when we fall short. And, as a public company, we have the added responsibility to be open and responsive to our approximately 80,000 shareholders worldwide.

Living up to these expectations and obligations is not easy. Indeed, it requires detailed planning and hard work. That’s why we have structures, policies and processes to help promote the ethical and efficient governance of our company. And we have internal and external auditors to monitor our compliance with those policies and procedures.

Starting at the top Our Board of Directors governs Kraft Foods in “One thing is certain—when gaining a business line with our Corporate Governance Guidelines. advantage means violating the rules or ignoring Ten of our 11 directors are independent under the New York Stock Exchange listing standards. our values, we don’t do it.” The chief executive officer is the only Kraft Foods Code of Conduct, Introduction employee director.

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governance and compliance

All Board committees consist entirely of Given the increased focus on executive Delicious @ Work independent directors. The Board has a lead compensation in recent years, in 2010, the If our Code of Conduct doesn’t director—an independent director who serves as Board’s Human Resources and Compensation cover a specific situation, our the principal liaison between the chief executive Committee completed a thorough analysis employees draw on our values officer and other independent directors—to of compensation practices and made several to guide them: increase the Board’s effectiveness, promote adjustments to Kraft Foods executive We inspire trust. open communication among independent compensation programs. Starting in 2010, the We act like owners. directors, provide independent Board leadership mix of grants to senior management, including We keep it simple. on behalf of shareholders and chair meetings the named executive officers, has been We are open and inclusive. of the independent directors. 50 percent performance shares, 25 percent We tell it like it is. stock options and 25 percent restricted stock. We lead from the head and the heart. While the Board does not have a written policy This mix places more emphasis on performance- We discuss. We decide. We deliver. regarding diversity, the company endeavors to based compensation—that is, performance nominate and assemble a Board composed shares and stock options. of individuals with diverse views, backgrounds and professional experiences. For example, Setting clear standards on integrity three directors are women. The representation of women on our Board is almost twice the For employees, we developed our Code of Fortune 500 average of 15.7 percent, as Conduct as the cornerstone of our commitment reported in 2010 by Catalyst. to doing business with integrity. The Code is concise, clear and unequivocal, and available All non-employee Board members are expected in 34 languages. By stating 10 simple and to adhere to our Code of Business Conduct and wide-ranging rules, the Code links our business Ethics for Non-Employee Directors. This Code performance with our core values and draws addresses such issues as legal and regulatory strict ethical boundaries. It makes plain, for compliance and conflicts of interest. everyone who works at Kraft Foods, what we believe is the proper way to do business.

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governance and compliance

Our Code of Conduct reflects our belief that and responsible marketing. We continuously Delicious @ Work ensuring compliance and integrity is a never- measure and evaluate the effectiveness of In 2009, we launched a new ending process. We’re continually making sure our compliance and ethics programs. Ethics in Action awards program our standards are high, expectations are clear to recognize employees who act and that we have the tools and processes in Ensuring people feel safe with ethical courage and lead with place for meeting them. We regularly perform integrity. In 2010, several employees assessments of key legal and compliance risks to speak up received these global awards: across our entire company. Under our Speaking Up Policy, we expect • A customer finance analyst in the employees to ask questions and raise concerns Philippines spoke up to protect Educating employees on ethics about business practices when they see the business and ensure that we something they think may be wrong. didn’t employ an ex-colleague Our chief compliance officer and five regional with a reputation for negligence compliance officers—with support from other and dishonesty. Employees have several avenues for speaking members of the Compliance & Integrity and up, including their supervisors, compliance • A line operator in Slovakia took Legal groups—help employees understand officers or human resources contacts. responsibility for food safety and our ethical standards. Training educates made the hard decision to stop production to avert a potentially employees worldwide about our ethics and For times when employees are not comfortable serious problem. compliance practices. speaking with any of our internal sources, or simply wish to remain anonymous, we offer • A manager of European exports in In 2010, exempt Kraft Foods employees at all Switzerland displayed unwavering external support. Consistent with applicable integrity when refusing to make an levels took our Code of Conduct online training local laws, we have established a toll-free “unofficial” payment to customs and completed an acknowledgment form. We telephone HelpLine, which is operated by officials. were able to include all exempt employees an independent company, as well as a • In the U.S., a senior scientist from because we doubled the number of languages corresponding WebLine, so that our employees New York worked tirelessly to put offered for the course. In late 2010, we began can confidentially and, if they wish, anonymously safety and quality first, assuming a providing this course to our legacy Cadbury report instances of suspected wrongdoing or leading role in our response to a employees. ask questions about compliance matters. The pistachio recall. HelpLine and WebLine are available globally In addition, we offer in-depth courses to and allow employees to discuss their concerns employees based on their responsibilities. in their own languages. Topics include food safety, antitrust, anti-bribery

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governance and compliance

Anyone outside of our company who suspects Holding ourselves and our suppliers wrongdoing by a Kraft Foods employee or to high standards business can contact the HelpLine, WebLine or our Compliance & Integrity group at We select suppliers (including consultants and [email protected]. other service providers) around the world based, in part, on whether their ethical standards align We also encourage our employees and those with ours. Our guiding principle is that we will outside our company to report concerns not expect more of our suppliers than we about our fiscal controls, auditing matters expect of ourselves. or anything else that appears to involve malfeasance of any kind. Please report such We created a summary of our corporate social concerns to [email protected]. responsibility expectations in three public statements, which are substantively consistent In addition, Kraft Foods monitors public policy with long-standing Kraft Foods’ policies: and participates in the public discussion on issues affecting our company. Some examples Kraft Foods Statement on Human Rights of issues include food safety and security, Kraft Foods Corporate Responsibility Guidelines nutrition, biotechnology, environmental responsibility, food labeling, marketing and Corporate Responsibility Expectations packaging. And, when we engage with for Direct Suppliers governments, we follow the rules and do so transparently. For example, we voluntarily Most major suppliers and customers have publish a list of all Kraft Foods’ U.S. political requirements regarding corporate responsibility contributions in the Corporate Governance expectations that have led to a proliferation of section of our website. corporate codes of conduct and assessment requests. We helped create what we consider to be a simpler approach.

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governance and compliance

Kraft Foods is a founding member of the • Completed PROGRESS pilots at seven Delicious @ Work Program for Responsible Sourcing (AIM- of our facilities. PROGRESS), sponsored by Association In November, 2010, guided by • Set aggressive goals to complete self- des Industries de Marque (AIM) in Europe the objective to demonstrate the assessments and audits of 100 percent and the Grocery Manufacturers Association importance of responsible sourcing of our global locations during the next for the sustainability of business, in the U.S. This industry initiative allows a three years. leading companies—including supplier to provide common information about Kraft Foods—collaborated to hold corporate social responsibility performance so • Worked with our suppliers to initiate a first-of-its-kind supplier forum on Responsible Sourcing in each customer can make business decisions PROGRESS at more than 300 of their São Paulo, Brazil. independently and in accordance with its own facilities and completed 10 suppliers’ audits. corporate responsibility standards. The supplier forum included 280 people—representatives from brand Adding up to trust companies, supplier organizations To demonstrate our commitment to this and internationally accredited important initiative, in 2010, Kraft Foods: Of all of our assets, the public’s trust in us third‑party audit agencies. is the one we value most. Our governance policies, our Code of Conduct and our The focus of the Forum was on • Completed foundational work, by assessing the human aspect of sustainability, risk within our supply chain through self- expectations of suppliers are all parts of our emphasizing the people in our assessments and verification by data daily effort to preserve trust. Like any company, value chains and in the communities systems and third-party audits. we’ll sometimes fall short, but our standards, where we operate. It was an excellent policies and systems make it plain to anyone platform for the supplier partners to • Provided critical training to a number of who works for us, does business with us or engage with senior business leaders our facility managers and suppliers globally. buys our products: We’re working to create in order to get a sense of the Topics included corporate responsibility, a more delicious world—every day. urgency and seriousness of this PROGRESS, and the importance of opportunity. assessments and audits to continuously www.aim.be/responsible_sourcing.htm improve management systems and respond to customers’ requests for information.

governance and compliance: Inspiring trust Index At Kraft Foods, we’re creating a more delicious world and we’d love to hear your thoughts on how we’re doing. Please send us an e-mail at [email protected]. www.kraftfoodscompany.com/DeliciousWorld