Food giant Kraft has decided to split its grocery and snack activities, following Sara Lee’s example just months ago. The world’s second biggest food producer has announced its intentions together with its – excellent – results for the past three months.
The snack activities will include brands like including English confectionery producers Cadbury and French biscuit producer LU. It will be the larger of the two sections, with a yearly turnover of 22 billion euro – twice as much as the grocery department.
With the break-up, scheduled to be finished at the end of next year, CEO Irene Rosenfeld hopes to attract new shareholders for the two companies. “We have built two strong, but distinct, portfolios. Our strategic actions have put us in a position to create two great companies, each with the leadership, resources and strong market positions to realize their full potential”, she said.
Together with the split, Kraft Foods announced its quarterly results and noticed growth everywhere. Turnover grew 13.3% to 9.7 billion euro, organic revenue went up 7.1%. Price increases accounted for about three quarters of that growth, the rest came from volume growth and mix of products.
