Kraft to split into two companies
Eighteen months after buying Cadbury, Kraft Foods has announced that it is to split into two companies by separating its North American grocery business from its global snacks enterprise.
“Eighteen months into the Cadbury integration, the company has, in fact, built a global snacking platform and a North American grocery business that now differ in their future strategic priorities, growth profiles and operational focus,” says the company.
The separation is expected to take at least 12 months, and be completed before the end of next year.
The company goes on to say that the snacks business would focus on ‘fast-growing developing markets and in instant consumption channels’, while the North American business would continue to develop its brands distributed through more traditional grocers.
“Detailed review by the board and management has shown that these two businesses would now benefit from being run independently of each other,” adds Kraft.