We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

Kraft Foods to split in two

American grocery business to be spun off before the end of next year

Article comments

Kraft Foods said on Thursday it will split its business in two and create separately listed companies each with several billion pounds worth of annual revenues.

The two operations will be a global snacks business and a North American grocery company, with the latter to be spun off to shareholders before of the end of next year.

Kraft, which owns the British chocolatier Cadbury, as well as Oreo cookies, Maxwell House coffee and the desert brand Jell-O, is the latest large-scale operator to announce break-up plans, after Sara Lee, Fortune Brands, ITT and ConocoPhillips recently did the same.

A Kraft North American grocery business would have revenues of close to $16 billion (£9.8 billion) and incorporate its US beverage, cheese and convenient meal elements.

A global snacks business would be worth almost $32 billion and cover confectionaries in North America, as well as all European and developing market operations.

Kraft’s deal to buy Cadbury in 2010 was unpopular with the British public and concerns were raised over the prospects for its UK employees. The company’s chairman and CEO recently failed to appear before a House of Commons committee investigating the takeover and the subsequent decisions taken by Kraft's management.

The company increased its full-year outlook on Thursday after posting higher-than-expected profits for its latest fiscal quarter.

Read also – Christian Doherty’s take on why businesses are increasingly deciding that ‘bigger is not always better’ – CFO World In Depth - Breaking up isn’t hard to do



Kraft Foods to split in two
Financial Planning

Budget: What business wants

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Tesco sees 6% decline in annual profit

UK market leader faces up to 1.4% fall in like-for-like salesmore ..

Yahoo on the right path, says CEO

Marissa Mayer’s comments follow a 20 percent decline in quarterly earningsmore ..

Debenhams to increase investment in distribution centre automation

The retailer wants to cut distribution costs as omni-channel demands risemore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Digital streamlining of travel and expense claims [Part II]

Concur shows CFOs how to make life easier when the auditors come knockingmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..


* *