Had been holding Kraft (KFT) for some time based on M* recommendation. However, KFT just doesn't seem to be "getting it". They are a conservative company (not a bad thing) but will never grow more than 5-6% a year tops. I switched into Nestles (NSRGY) to get a higher grow rate in excess of 12%. Nestles is a 120+ year old, well managed international company. They are somewhat under followed by the investment community.
I am not expecting a major difference in performance but just feel better with Nestles. Any comments?
Thanks - tony
This is a WAG coming from data hid deeply in the arteriosclerotic recesses of my coffee deprived brain, but I wonder about the OTC as a strategy b/c of Nestles involvement in baby formula in Africa and the loud screams and protests that corporate behavior engendered.
Roberta
.....that extra foreign tax bite killed it for me.
On an anecdotal note, I regularly vacation in Asia and note that Nestle's is way behind Cadbury and Hershey in product placement at stores like 7/11.