Higher costs for commodities and energy eroded Kraft Inc.'s bottom line, which fell 13.5%. The food giant said Tuesday it expects those costs to continue to rise.

Kraft raised prices in the second quarter and felt the impact of then. However, the company said revenues "generally rebounded" in the third quarter. Kraft raised prices on certain items in the third quarter, such as multiple product lines in the company's North America foodservice division and chocolate in several European markets, but doesn't expect to see any benefits from that until the fourth quarter.

All of Kraft's seven product segments grew in sales, with robust performances coming out of the new South Beach Diet products, Chips Ahoy! soft chunky cookies and Nabisco 100 calorie packs snacks.

Read more about Kraft Foods and South Beach Diet line of products at http://www.marketwatch.com/news/story.asp?dist=¶m=archive&siteid=google&guid=%7B34AD1513%2DF41C%2D4485%2D9E39%2D37C90FF87B86%7D&garden=&minisite=.