Kraft Hires Investment Bank to Sell Confectionery Brands

19 October 2004

US-based Kraft Foods company is slimming down its brands.

Ceo Roger Deromedi is looking to sell off Altoids breath mints and Life Savers candies in a bid to streamline Kraft operations and expand the global market share of its other businesses.

The two brands are likely raise more than $1 billion (€780m, £540m) and possible buyers include Cadbury Schweppes, Hershey and Wrigley , though none are prepared to comment.

Meantime, Kraft has appointed investment bank UBS to assist in auctioning the brands.

Life Savers and Altoids are profitable, bringing in around $660m in combined sales for Kraft, but the company is better known and more experienced in cheese, crackers and cookies. Deromedi is keen to 'get greater focus' in the brand portfolio.

The company has revised down its earnings forecast for the year and second quarter profits were down by 25%.

Data sourced from Wall Street Journal Online; additional content by WARC staff