Kraft Food's North American president, Tony Vernon, said at a food investor conference Tuesday he anticipates his region's commodity costs to increase by between $700 million and $800 million in 2011, according to a report.
As rising commodity costs affect food makers such as Kraft, the company's executives said they would increase marketing and introduce new products to the market, while holding costs steady, the Wall Street Journal reported.
Shares of Kraft were trading higher Tuesday.
The executives told investors an increase in costs for milk, meats and other commodities has caused Kraft to raise prices on some of its products, the report said.
The Northfield, Ill.-based packaged food manufacturer's executives said they plan to cut costs to maintain profits through implementing more efficient means of manufacturing, according to the report.