July 29, 1999

Lila White
(804) 692-3110

Cathy Pernu
Kraft Foods
(847) 646-3946
Jill Lawrence
(804) 371-0049
Governor Gilmore Lauds New Product Announcement By Kraft Foods
--Kraft Foods' Winchester facility to manufacture new product; recent expansion to create 200 new job-

Winchester - Governor Jim Gilmore today visited Kraft Foods’ newly expanded Winchester facility, where the company announced that the plant would manufacture a new product, OSCAR MAYER® LUNCHABLES® featuring breakfast food combinations. Manufacturing capacity has also increased for one of the plant’s current products, CAPRI SUN ALL NATURAL® juice drinks. Last October, Kraft Foods announced its plans to expand its Winchester facility to create 200 new jobs by the end of 1999.

"Food processing is a thriving industry in Virginia that includes respected companies such as Frito-Lay, Hershey, Maple Leaf, Coors and Kraft Foods," Governor Gilmore said. "Kraft Foods’ expansion in Winchester, coupled with today’s announcement of the plant’s manufacturing of a new product line, demonstrates the company’s commitment to the Commonwealth."

Kraft Foods, with headquarters in Northfield, Illinois, is the North American food business of Philip Morris Companies Inc. The Winchester facility is the first Kraft plant to produce the new LUNCHABLES Waffles and Pancakes – the only lunch combinations to feature breakfast foods. The product will be available nationally by the end of August. Kraft’s Oscar Mayer Foods Division created the lunch combinations category with the introduction of OSCAR MAYER LUNCHABLES in 1988. In 1996, the company sold its billionth package of LUNCHABLES. The Winchester plant, which currently employs 250, also manufactures KOOL-AID BURSTS® soft drinks.

"We’re pleased that Winchester was chosen as the site for this expansion," Kraft Plant Manager Gary Gerasimowicz said. "This demonstrates the company’s confidence in our plant as a competitive facility and the Commonwealth of Virginia as the right place to build these businesses."

"This expansion by Kraft is another example of the Commonwealth’s commitment to existing business," Secretary of Commerce and Trade Barry E. DuVal added. "Kraft’s continued expansion in Winchester will pay great dividends to Virginia’s future economic growth."

Governor Gilmore approved a grant from the Governor’s Opportunity Fund in the amount of $250,000 to assist the City of Winchester with site preparation. The Virginia Economic Development Partnership, Frederick County and the Winchester-Frederick County Economic Development Commission assisted Kraft with its decision. The Virginia Department of Business Assistance will provide workforce training services.



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