Kraft has also taken steps to change their
portfolio mix to incorporate this new trend. In 2000, the company purchased health
food lines Balance Bar and Boca Burger for a combined $779 million. Kraft also struck a
deal with the creator of the South Beach Diet to allow Kraft to put the diet’s “seal” on
nearly 200 products. Kraft’s diversification has also been beneficial in this transition as
Kraft has seen increases in sales of snack and granola bars. While the importance of
health and nutrition is gaining momentum, industry reports show that taste is still a key
factor in determining sales. The stigma that nutritional value equates to less desirable
taste should buy the industry some time and afford firms the opportunity to realign
product portfolios before this stigma is removed.