Kraft Plans to Slash Supplier Base

After a recent bid to woo Cadbury, the US food and beverage company Kraft Foods is now planning to halve its supplier base as part of its cost-cutting plans .

The move will affect its products from manufacturing through to packaging, affecting more than 30,000 companies.

Kraft is hoping to save over $300m annually through its plan, the North American food maker told Reuters.

The move comes after the company spent several years cutting costs via plant closings, divesting brands that did not fit its core categories, and investing more money in advertising and product development to boost sales.