NORTHFIELD, Ill — Kraft Foods has announced plans to divide into two publicly traded companies, with one concentrating on snacks and the other on the North American grocery business.
The shift comes at a time when Wal-Mart, Target and dollar stores are expanding offerings to include grocery items and appeal to one-stop-shop customers.
“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,” said Irene Rosenfeld, chairman and CEO of the brand.
The snacks company will manage brands such as Oreo, Trident, LU biscuits and Cadbury and will include the current Kraft Foods Europe, developing market units and the North American snacks and confectionery businesses.
The grocery business would contain the current U.S. beverages, cheese, convenient meals and grocery segments and non-snack categories in Canada and foodservice. Its brands would also include Jell-O desserts.
Kraft reps expect the split to be complete by the end of next year.