Kraft Foods Inc. said it plans to split into two publicly traded companies, with one focusing on its international snack brands like Trident gum and Oreo cookies and the other on its North American groceries business that includes Maxwell House coffee and Oscar Mayer meats.
The surprise move, announced Thursday, comes after Kraft last year became the second largest global food company with its acquisition of Cadbury PLC.
Its proposed global snacks business will include Kraft’s European business and developing markets units, as well as snacks and confectionery businesses in North America. With about $32 billion in estimated revenue, it will house the likes of Oreo cookies, Cadbury chocolates and Trident gum, all which have greater prospects for growth in emerging markets and to sell more to consumers on the go.
Kraft also reported earnings Thursday. For the second quarter, Kraft reported a profit of $976 million, or 55 cents a share, up from $937 million, or 53 cents a share, a year earlier. Operating earnings rose to 62 cents, driven by currency and operating gains, while net revenue climbed 13% to $13.9 billion, helped by price increases. Analysts polled by Thomson Reuters were looking for 58 cents and $13.2 billion, respectively.
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Kraft Foods plans to split Kraft Foods is planning to split itself into two publicly traded panies. One pany will be the global snacks division and the second pany will focus on Kraft's North American grocery business. Kraft Foods said today it plans to split into two publicly traded panies, an international snacks business including Cadbury, Oreo and Trident, and a North American grocery business with Kraft became the latest US pany decide separate its businesses, announcing that it would its North American grocery division from its global snacks business less than 18 DART & KRAFT PLANS A Dart & Inc., the giant and consumer-products corporation, said Thursday that it will divide itself in two independent panies. Tags: dart, kraft, plans, split, Incorporated has announced it will slash 1,600 jobs in North America as it gets ready the pany in two separate business units.