Kraft completes acquisition of Danone’s Biscuit Business
Kraft Foods completes the multi billion acquisition of Groupe Danone’s biscuit business.
The addition of Danone’s leading biscuit business will transform Kraft’s growth strategy by strengthening its lead in the company’s fastest growing global segment, and plans to significantly expand its presence in both developed and emerging markets.
Sanjay Kholsa, president of Kraft International comments,“In emerging markets, we will have greater scale. Our business will nearly double in size in the fast-growing China market and we will gain a foothold in both Indonesia and Malaysia for faster expansion. In Russia our distribution strength, coupled with Danone’s brands, will give us an even stronger presence. In Europe, we will have another strong growth category joining our chocolate, coffee and cheese businesses.
The addition of Danone’s biscuit business will transform Kraft’s international business into a stronger contributor to revenue growth. Biscuits will also become the company’s largest global business, representing 20% of Kraft’s total revenues.
The acquisition includes market-leading brands such as LU, Tuc and Prince as well as operations and assets in more than 20 countries, including 32 manufacturing facilities. Kraft plans to use these brands to strengthen its broad portfolio of market leading brands such as Oreo cookies and Philadelphia cream cheese and boost its £34 billion (£47b) revenue by boosting its international appeal.