FOR IMMEDIATE RELEASE

- Q3 net revenues were $4.4 billion, up 0.1%; Organic Net Revenues(1) increased 0.9% driven by pricing actions in response to higher commodity costs

- EPS of $0.74 included negative $0.03 from market-based impacts to post-employment benefit plans(1) and a $0.01 unfavorable impact due to unrealized gains/losses from hedging activities

Kraft Foods Group, Inc. (NASDAQ: KRFT) today announced financial results for the third quarter of 2014 that reflected significant pricing actions to offset higher commodity costs as well as lower volume/mix versus the prior year quarter.

"We remain on track to deliver earnings growth consistent with the expectations we laid out at the start of the year, despite a rapidly changing consumer environment," said Kraft CEO Tony Vernon. "To date, our implementation of commodity-based pricing has been successful. But in other areas, our execution has been mixed. We will continue to apply our playbook, improve our execution, and proactively adapt to drive profitable growth now and in the future."

Q3 2014 FINANCIAL SUMMARY

Net revenues in the third quarter increased 0.1 percent to $4.4 billion.

• Organic Net Revenues increased 0.9 percent as pricing to offset significant rises in commodity costs contributed 2.1 percentage points of growth.
• A volume/mix decline of 1.2 percentage points reflected the impact of significant price increases in cheese, meats and coffee, as well as category softness in meals and desserts.

Operating income in the third quarter decreased 16.6 percent to $0.7 billion.

• The reduction in operating income was driven by a $26 million negative impact from market-based impacts to post-employment benefit plans this year compared to a $175 million benefit in the prior year quarter.
• Excluding this factor, operating income grew at a mid-single digit rate, reflecting lower marketing expenditures, improved manufacturing productivity, the benefits of lower spending on cost savings initiatives,² and reduced overhead costs. These gains were partially offset by the impacts of pricing lagging commodity cost increases, lower volume/mix and an unfavorable change in gains/losses on commodity hedging activity.

Earnings per share in the third quarter were $0.74.

• EPS included a $0.03 negative impact from market-based impacts to post-employment benefit plans and a$0.01 unfavorable impact due to unrealized gains/losses from hedging activities. EPS of $0.83 in the third quarter last year included an $0.18 benefit from market-based impacts to post-employment benefit plans and a$0.01 favorable impact due to unrealized gains/losses from hedging activities.
• Excluding this factor, EPS was up strongly reflecting the growth from operations as well as a net benefit of approximately $0.05 from a lower tax rate versus the prior year quarter.

Free Cash Flow¹ was $554 million year-to-date.

• A combination of higher inventory levels as well as a reduction in accrued liabilities held back Free Cash Flow versus the first nine months of last year.

Q3 2014 BUSINESS SEGMENT HIGHLIGHTS

Cheese:

• Net revenues of $937 million increased 1.6 percent reflecting higher price levels partially offset by lower volume/mix. Revenue growth was behind overall cheese category growth as Kraft increased prices ahead of competition to offset an unrelenting dairy cost environment.
• Operating income declined 15.8 percent as lower spending on cost savings initiatives was more than offset by price realization running behind higher input costs, lower volume/mix as well as executional missteps that impacted manufacturing productivity.

Refrigerated Meals:

• Net revenues of $908 million increased 3.4 percent reflecting a combination of price increases related to higher input costs and volume/mix gains. Balanced growth was achieved through continued momentum in Lunchables and bacon as well as gains from innovation, including P3 Portable Protein Packs and Oscar Mayer Deli Fresh BOLD cold cuts.
• Operating income growth of 20.5 percent was driven by favorable pricing net of commodity costs and manufacturing productivity gains that were partially offset by increased advertising support to drive category growth.

Beverages:

• Net revenues of $628 million increased 0.5 percent reflecting gains from coffee pricing and growth in on-demand coffee that more than offset an unfavorable volume/mix. Lower volume/mix reflected a combination of strong volume growth in Capri Sun ready-to-drink beverages and Kool-Aid powdered beverages offset by lower volumes of roast-and-ground coffee.
• Operating income more than doubled, driven by lower marketing spending, favorable pricing net of commodity costs and improved manufacturing productivity.

Meals & Desserts:

• Net revenues of $512 million declined 6.7 percent reflecting a combination of category softness in both meals and desserts, as well as incremental promotional spending to defend market share.
• Operating income decreased 8.2 percent due to a combination of unfavorable pricing net of commodity costs and the impact of lower volumes. These declines were partially offset by lower spending on marketing initiatives as brand-building activities are being reassessed.

Enhancers & Snack Nuts:

• Net revenues of $471 million declined 2.5 percent. The decline was driven by lower net pricing and lower sales to Mondelez that were partially offset by favorable volume/mix. The decline in Organic Net Revenues reflected growth in Planters snack nuts that was more than offset by declines in salad dressings and peanut butter.
• Operating income growth of 14.0 percent reflected lower advertising and consumer support as well as improved manufacturing productivity. These gains were partially offset by the impact of lower pricing net of commodity costs.

Canada:

• Net revenues of $454 million declined 4.2 percent due to an unfavorable currency impact. Organic Net Revenue growth of 0.4 percent reflected gains from significant pricing to offset higher input costs in cheese and coffee as well as the successful launch of McCafe coffee. These gains were tempered by lower volume/mix.
• Operating income increased 1.2 percent including an unfavorable currency impact. Excluding currency, operating income grew at a mid-single digit rate reflecting lower consumer incentives versus the prior year quarter in the Tassimo business and manufacturing productivity gains that were partially offset by lower volume/mix.

Other Businesses:

• Net revenues of $490 million increased 5.8 percent. Organic Net Revenue growth was 8.2 percent reflecting a combination of significant price increases to offset higher input costs and solid volume growth.
• Operating income declined 1.6 percent as volume/mix gains and lower spending on cost savings initiatives were more than offset by investments in marketing and unfavorable pricing net of commodity costs.

CONFERENCE CALL

Kraft will host a conference call to discuss its third quarter 2014 results today at 4 p.m. Central time.

The call will be hosted by:

• Tony Vernon, CEO
• Teri List-Stoll, EVP and CFO
• Chris Jakubik, VP, Investor Relations

Live Event Dial-in Details:

United States Dial-In: 1-888-350-0137
International Dial-In: 1-970-315-0478
Access code: 24944280

To ensure timely access, participants should dial in approximately 10 minutes before the call starts. A listen-only webcast with accompanying presentation will be available in the Investor Center section of Kraft's Web site at ir.kraftfoodsgroup.com, under "Events & Presentations."

A replay of the conference call will be available until November 9, 2014, by calling 855-859-2056 from the United States and Canada or 404-537-3406 from other locations. The access code for the replay is 24944280. An archive of the webcast will be available for one year following the conference call on Kraft's Web site.

ABOUT KRAFT FOODS GROUP

Kraft Foods Group, Inc. (NASDAQ: KRFT) is one of North America's largest consumer packaged food and beverage companies, with annual revenues of more than $18 billion. The company's iconic brands include Kraft,Oscar Mayer, Velveeta, Planters, Philadelphia, Maxwell House, Lunchables, Capri Sun, Kool-Aid and JELL-O. Kraft's 22,500 employees in the U.S. and Canada have a passion for making the foods and beverages people love. Kraft is a member of the Standard & Poor's 500 and the NASDAQ-100 indices. For more information, visit www.kraftfoodsgroup.com and www.facebook.com/kraft.

FORWARD-LOOKING STATEMENTS

This press release contains a number of forward-looking statements. Words such as "continue," "change," "deliver," "drive," "execute," "expect," "improve," "reassess," "remain," "will," and variations of such words and similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding Kraft's growth, progress, execution, consumers and marketing. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties, many of which are beyond Kraft's control. Important factors that affect Kraft's business and operations and that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, increased competition; Kraft's ability to maintain, extend and expand its reputation and brand image; Kraft's ability to differentiate its products from other brands; increasing consolidation of retail customers; changes in relationships with significant customers and suppliers; Kraft's ability to predict, identify and interpret changes in consumer preferences and demand; Kraft's ability to drive revenue growth in its key product categories, increase its market share, or add products; volatility in commodity, energy and other input costs; changes in Kraft's management team or other key personnel; Kraft's geographic focus in North America; changes in regulations; legal claims or other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; Kraft's ability to complete or realize the benefits from potential acquisitions, alliances, divestitures or joint ventures; Kraft's indebtedness and ability to pay such indebtedness; disruptions in information technology networks and systems; Kraft's inability to protect intellectual property rights; weak economic conditions; tax law changes; the tax treatment of Kraft's spin-off from Mondelez International, Inc.; volatility of market-based impacts to post-employment benefit plans; pricing actions; and other factors. For additional information on these and other factors that could affect Kraft's forward-looking statements, see Kraft's risk factors, as they may be amended from time to time, set forth in its filings with the Securities and Exchange Commission, including its most recently filed Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. Kraft disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.

NON-GAAP AND OTHER FINANCIAL MEASURES

To supplement Kraft's financial statements presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"), Kraft presents Organic Net Revenues and Free Cash Flow, both of which are considered non-GAAP financial measures. The presentations of Organic Net Revenues and Free Cash Flow are intended to supplement investors' understanding of Kraft's operating results and liquidity. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Kraft's results prepared in accordance with GAAP. In addition, the non-GAAP measures Kraft uses may differ from non-GAAP measures used by other companies, and other companies may not define the non-GAAP measures Kraft uses in the same way.

Kraft currently defines Organic Net Revenues as net revenues excluding the impact of transactions with Mondelez International, acquisitions, divestitures (including the termination of a full line of business due to the loss of a licensing or distribution arrangement, and the complete exit of business out of a foreign country), currency and the 53rd week of shipments when it occurs. Management believes that presenting Organic Net Revenues is useful to investors because it (i) provides investors meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view Kraft's performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate Kraft's historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating Kraft.

Kraft defines Free Cash Flow as cash flow from operations less capital expenditures. Management believes that Free Cash Flow is useful to investors because it reflects Kraft's cash available for uses including investments in growth and product development and Kraft's ability to generate cash while maintaining its fixed assets.

See the attached schedules for supplemental financial data and corresponding reconciliations of Organic Net Revenues to net revenues for the three and nine months ended Sept. 27, 2014 and Sept. 28, 2013 and Free Cash Flow to operating cash flow for the nine months ended Sept. 27, 2014 and Sept. 28, 2013.

As previously announced, beginning in 2013, Kraft adopted a mark-to-market accounting policy for Kraft's post-employment benefit obligations. Kraft discloses market-based impacts in order to provide better transparency to investors in evaluating Kraft. Management currently defines market-based impacts to post-employment benefit plans as the costs or benefits resulting from the change in discount rates, the difference between Kraft's estimated and actual return on trust assets, and other assumption changes driven by changes in the law or other external factors.

Note: In the third quarter of 2014, Kraft recorded expenses of $22 million related to cost savings initiatives within segment operating income and general corporate expenses as follows: Cheese ($4 million); Refrigerated Meals ($7 million); Beverages ($2 million); Meals & Desserts ($5 million); Enhancers & Snack Nuts ($2 million); Other Businesses ($1 million); and General corporate expenses ($1 million). In the third quarter of 2013, Kraft recorded expenses of $50 million related to cost savings initiatives within segment operating income and general corporate expenses as follows: Cheese ($16 million); Refrigerated Meals ($6 million); Beverages ($7 million); Meals & Desserts ($5 million); Enhancers & Snack Nuts ($5 million); Canada ($3 million); Other Businesses ($3 million) and General corporate expenses ($5 million).

Note: In the first nine months of 2014, Kraft recorded expenses of $57 million related to cost savings initiatives within segment operating income and general corporate expenses as follows: Cheese ($11 million); Refrigerated Meals ($13 million); Beverages ($4 million); Meals & Desserts ($7 million); Enhancers & Snack Nuts ($16 million); Canada ($1 million); Other Businesses ($2 million); and General corporate expenses ($3 million). In the first nine months of 2013, Kraft recorded expenses of $251 million related to cost savings initiatives within segment operating income and general corporate expenses as follows: Cheese ($79 million); Refrigerated Meals ($32 million); Beverages ($39 million); Meals & Desserts ($25 million); Enhancers & Snack Nuts ($22 million); Canada ($9 million); Other Businesses ($17 million); and General corporate expenses ($28 million).

Kraft Foods Group
Basil Maglaris (media), 847-646-4538
news@kraftfoods.com
or
Christopher Jakubik, CFA (investors), 847-646-5494
ir@kraftfoods.com