Kraft still expects split before end of 2012
CHICAGO (AP) -- Kraft Foods Inc. still expects to split itself into two publicly traded companies before the end of next year, the nation's largest food maker said Wednesday.
Kraft announced last month that one of the companies will focus on its international snack brands like Trident gum and Cadbury chocolates and the other one will concentrate on its North American grocery business that includes Maxwell House coffee and Oscar Mayer meats.
Kraft is the latest in a string of U.S. companies including rival Sara Lee Corp. to separate its business to cater to different niche markets. As companies increasingly look for ways to drive growth during a difficult economic environment, there's been a major shift from thinking bigger is always better to sharpening their strategy on smaller businesses that focus on a group of brands.
Kraft, which will present at the Barclays Capital Back-to-School Consumer Conference on Wednesday, said the North American grocery business will also include its Philadelphia and namesake brands along with 17 others.
The snacks business is expects to get more than 42 percent of its sales from developing markets, 36 percent from Western Europe and 22 percent from North America. Aside from Trident and Cadbury, brands will include Jacobs, LU, Milka, Nabisco, Oreo, Tang and nearly 46 others.
Copyright 2011 The AP.