Organization: Kraft Foods Inc.

Year: 2015

Resolved: Resolved: That shareholders request that the Board of Directors disclose financial and operational risks to which Kraft's allowance of confining egg-laying chickens in cages within its food supply may be exposing the company and its investors. The disclosure should be made within six months of the 2015 annual meeting at a reasonable cost and should omit proprietary information.

Supporting Statement:Supporting Statement: In its 2014 proxy, Kraft supported a shareholder proposal applauding the Company for moving away from the lifelong cage confinement of pigs in its pork supply-and the proposal passed by over 80%. This proposal simply seeks risk disclosure around a similar issue. Here are the basic facts: * Kraft sources eggs from caged hens who are packed so tightly in 'battery cages' with other birds they can't even fully extend their wings. Each hen is given less space on which to live than a single sheet of paper. * This abusive practice may be exposing the company to financial and operational hazards. * Kraft competitors like Unilever and Nestle are eliminating all eggs coming from battery caged hens, and have already switched hundreds of millions of eggs to cage-free. * Numerous states and countries have already banned battery cages. Supporting evidence from experts regarding the potential risks: * 'In the case of animal welfare,' reports The World Bank's International Finance Corporation, 'failure to keep pace with changing consumer expectations and market opportunities could put companies and their investors at a competitive disadvantage in an increasingly global marketplace.' * Citigroup reports that the 'potential headline risks' that could damage food companies include 'concerns over animal cruelty.' * A study by Technomic-the food industry consultancy and analysis firm-found that to consumers, concerns about animal welfare outweigh those related to the environment or buying fair trade, local or organic. * 'Humane is the next big thing,' says Supermarket Guru Phil Lempert. 'We ask shoppers what they're looking for and that is what they're telling us.' * More than a dozen studies found that there's a greater chance of Salmonella in egg operations using cages than in a non-cage-free environments. Kraft does use some cage-free eggs, but it continues to indefinitely allow the controversial caging practice for hens. The evidence shows that this places Kraft out-of-step with competitors and may expose the company-and its investors-to risks. Shareholders supported last year's proposal on a similar topic and are urged to support this proposal too by voting FOR it, thereby providing risk disclosure around what shareholders have already deemed an important issue-the cage confinement of animals.