In a move geared to raise its market value, Kraft Foods is splitting itself into separate businesses. Oreos, Trident and Cadbury will remain under company control as part of its global snacks operation, while the North American grocery division, including Velveeta, Macaroni & Cheese and Oscar Mayer, will be spun off to shareholders. The operations will pursue separate strategies.
The New York Times reports the maneuver pleases mega-shareholder Warren Buffet, who called Kraft’s purchase of Cadbury last year “dumb.”
According to the story, the split could mean more aggressive moves from the two Krafts in the food industry, with the snacks business attempting to march into new markets while the grocery side could fan out into collecting more brands. Theoretically, you could be seeing a lot more of that Kraft logo in the grocery aisles, as if you didn’t see enough of it already.
Kraft Foods, in Split, Is Keeping Oreos but Not Velveeta [The New York Times]