Kraft's Streamlining Gathers Pace

24 December 2004

US food giant Kraft continues its slimming regime as it sheds more brands.

The latest sell-off is to Canadian frozen dessert firm CoolBrands International which has agreed to buy Kraft's yogurt business for around $59 million (€44m, £30m).

Coolbrands is acquiring Breyers Fruit on the Bottom and Crème Savers, worth around $90m in annual salers. The deal is expected to be completed in the first quarter of 2005.

Kraft ceo Roger Deromedi is keen to "get greater focus" in the company's brand portfolio and last month sold candy brands Altoids and Life Savers to Wrigley in a $1.48 billion deal.

Deromedi plans to concentrate the company's efforts on what it does best - namely cookies and crackers - in a bid to expand its global market share.

To this end parent company Atria Group is considering spinning off best-selling brands Oreo cookies and Ritz crackers into a separate company, according to ceo Louis Camilleri.

Data sourced from New York Post; additional content by WARC staff