Latest news with #MondelezInternational
Forbes
6 hours ago
- Business
- Forbes
Food Company Breakups: A New Old Trend?
It's a tale as old as time in the food and beverage industry: companies breaking up, making up, and ... More spinning off into new entities. Recent breakups and spinoffs in the food and beverage industry are reminiscent of some notable past partings. With current market conditions, this back-to-the-future situation may be a new trend. Dean Foods spun off its specialty food business, creating TreeHouse Foods in 2005, to focus more closely on private label food products. In 2012, Kraft Foods Inc. split into two independent companies. Mondelez International focused on global snacks, while Kraft Foods Group took over the North American grocery business (later merged with Heinz). Also in 2012, Ralcorp spun off its Post cereals business as Post Holdings, enabling both companies to pursue more focused business strategies. In 2016, Conagra Foods spun off its frozen potato business, Lamb Weston, into a separate publicly traded company, allowing both to concentrate on their respective markets. Now, Kraft Heinz may be at it again. The Food Institute put things simply with a headline saying, 'After Trying Everything Else, Kraft Heinz Eyes Breakup.' Kraft Heinz may be seeking to follow in Kellogg's footsteps. The company split itself into two entities in 2023, including the slower-growing cereal business and Kellanova. Mars reached a deal to buy both Kellanova and the cereal business, (renamed to W.W. Kellogg), and is now being sold to Italy's Ferrero, the Food Institute said. Now Kraft Heinz may be putting a new (or is it an old?) spin on business in the food and beverage sector. Why Do Companies Do It? Pittsburgh- and Chicago-based Kraft Heinz recently said it's evaluating 'strategic transactions' designed to 'unlock shareholder value.' So, what does that mean? Kraft Heinz already sells some of the nation's best-known brands, such as Oscar Meyer, Ore-Ida, Kraft Mac & Cheese, Velveeta, Kool-Aid, Jell-O, Maxwell House, Capri Sun, and many more. It looks like it may now be selling — or at least spinning off — one or more brands, not just the products marketed under their name. It seems like a lot is going on at Kraft Heinz these days. Kraft Heinz CEO Carlos Abrams Rivera said the company's 'goal has always been to make high-quality, great-tasting food for all and to keep consumers at the forefront of all we do, enabling us to drive profitable long-term growth and value creation.' But it looks like there's another goal, too: looking out for shareholders and boosting the stock price, which fell recently before rising. At the time of this writing, Kraft Heinz stock was a little above $28, up from a 52-week low of a little more than $25 and down from a 52-week high of a little more than $36 but rising steadily since around June 30. 'The company is weighing a split that could separate off a large part of its grocery segment and leave behind its faster-growing sauces units,' according to Bloomberg, which added plans are 'still being finalized' but 'could be announced in the coming weeks.' This announcement came almost a decade to the day after the two companies – Kraft Foods Group and H.J. Heinz Holding Co. — merged, resulting in a press release saying, 'Combination Creates Unparalleled Portfolio of Powerful and Iconic Brands.' 'The complementary nature of the two brand portfolios presents substantial opportunity for synergies, which will result in increased investments in marketing and innovation,' the companies said in the July 2, 2015, release. Spinoffs and Skeptics MarketWatch recently said possible spinoffs are a reason to be 'skeptical of Wall Street's cheerleading about mergers and acquisitions.' And Kraft Heinz is already slimming down with smaller sales. On July 10, the company said it reached a deal to sell its infant and specialty food business in Italy to NewPrinces. Subject to regulatory approvals, the deal is expected to close by the end of this year. NewPrinces is buying the infant food brands Plasmon, Nipiol, and Dieterba, and specialty food brands Aproten and Biaglut in Italy. The Food Institute noted that Kraft Heinz already engaged in 'portfolio pruning' in 2021, selling its natural cheese business to France's Groupe Lactalis and its nuts business to Hormel. 'Efforts to further slim down, including a reported effort to sell Oscar Mayer last year, didn't come to fruition,' according to the Food Institute. After "portfolio prunning" in 2021, Kraft Heinz will likely focus on their stronger brands, ... More including their beloved range of condiments, Philadelphia Cream Cheese, and Ore-Ida. Willem Brandt, Kraft Heinz President, Europe and Pacific Developed Markets, said the recent sale in Italy will 'fuel investment and growth in our core areas, and enhance focus on our Accelerate platforms.' 'It's a great example of how we're intentionally and proactively managing our portfolio to accelerate organic growth and drive sustainable, long-term value,' Brandt said. He added it's a 'strategy to drive profitable growth' through the company's Accelerate platforms, including Heinz Tomato Ketchup and products such as mayonnaise, table sauces, culinary products, and pasta sauces. In addition to brands, the company is selling its Latina, Italy, factory, which employs around 300 people and makes approximately 1.8 billion biscuits per year for Italy's Plasmon brand. The Food Institute also reiterated claims that Kraft Heinz will likely focus on stronger brands, including condiments, Philadelphia Cream Cheese, and Ore-Ida. 'Clearly, Kraft could follow the Kellogg playbook, and shunt off weaker brands (and a good deal of debt) into a separate entity,' the Food Institute wrote. 'It's possible that a Kraft split could be as successful as the Kellogg split was, though that's a high bar.' A Kraft Heinz without Oscar Mayer, Maxwell House, and Velveeta 'could attract more investor interest and a higher valuation,' according to The Food Institute. A Fresh Start — Again The company is shedding more than brands as it focuses on stock price, not just sales. Kraft Heinz recently said Berkshire Hathaway announced it will no longer hold board seats at the company. Regarding the scale, frequency, and even existence of spinoffs or sales, Kraft Heinz isn't setting any deadlines or announcing a calendar. An old trend becoming new: legacy food companies are focusing on core profitable products, resulting ... More in reverse mergers. 'There can be no assurance that the Company's assessment process will result in any transaction, or any assurance as to its outcome or timing,' the company said several weeks ago. Kraft Heinz said it 'does not intend to make any further announcements regarding the process unless and until it determines that further disclosure is appropriate or necessary.' The next time you're in a supermarket, remember that while you eye Kraft Heinz products, they could soon find a new home. Legacy food companies are focusing on core profitable products, increasing shareholder value, and reducing debt, resulting in reverse mergers, an old trend becoming new.
Scottish Sun
9 hours ago
- Business
- Scottish Sun
Cadbury launching two all-new chocolate bars at major supermarket across UK in days
CHOC SHOCK Cadbury launching two all-new chocolate bars at major supermarket across UK in days Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) CADBURY is launching two all-new chocolate bars at a major supermarket across the UK in days. Bourneville Salted Caramel and Bourneville Chopped Hazelnut will be appearing on shelves later this month. Sign up for Scottish Sun newsletter Sign up 2 Cadbury is launching a new Bourneville Salted Caramel bar in days Credit: Sainsbury's 2 Shoppers will also be able to buy a Bournevill Hazelnut flavour Credit: Sainsbury's Shoppers can buy both the new flavours, which come with a recommended retail price (RRP) of £2.20, at retailers nationwide. Both of the never-before-seen flavours are listed on the Sainsbury's website but not available to purchase just yet. We have asked Mondelez International, which owns Cadbury, all the other retailers they'll be available at and will update this story when we have heard back. A Mondelez International spokesperson said: "We're excited to be introducing two delicious new flavours to our Cadbury Bournville range, Salted Caramel and Chopped Hazelnut. "The new products will be available at retailers nationwide from late July and will be a permanent addition to our range." The launch of the new Bourneville bars comes just months after The Sun exclusively revealed Cadbury was bringing out a new Dairy Milk bar. The chocolatier unveiled its Dairy Milk Iced Latte flavour in May, combining classic Dairy Milk chocolate with a creamy coffee filling and crunchy biscuit pieces. The brand also introduced four limited edition Dairy Milk summer edition bars with packaging that changed colour based on the temperature.
The Sun
9 hours ago
- Business
- The Sun
Cadbury launching two all-new chocolate bars at major supermarket across UK in days
CADBURY is launching two all-new chocolate bars at a major supermarket across the UK in days. Bournville Salted Caramel and Bournville Chopped Hazelnut will be appearing on shelves later this month. Shoppers can buy both the new flavours, which come with a recommended retail price (RRP) of £2.20, at retailers nationwide. Both of the never-before-seen flavours are listed on the Sainsbury's website but not available to purchase just yet. We have asked Mondelez International, which owns Cadbury, all the other retailers they'll be available at and will update this story when we have heard back. A Mondelez International spokesperson said: "We're excited to be introducing two delicious new flavours to our Cadbury Bournville range, Salted Caramel and Chopped Hazelnut. "The new products will be available at retailers nationwide from late July and will be a permanent addition to our range." The launch of the new Bournville bars comes just months after The Sun exclusively revealed Cadbury was bringing out a new Dairy Milk bar. The chocolatier unveiled its Dairy Milk Iced Latte flavour in May, combining classic Dairy Milk chocolate with a creamy coffee filling and crunchy biscuit pieces. The brand also introduced four limited edition Dairy Milk summer edition bars with packaging that changed colour based on the temperature. Shoppers have also been going wild for a limited edition Cadbury Twirl White Dipped that's been landing on shelves. The bars, branded "outstanding" by customers, are similar to the classic milk chocolate version but with a white chocolate coating. It's not all been good news coming from the brand in recent months though. Cadbury axed its Bournville fingers earlier this year despite rave reviews from customers. The crispy biscuits were a popular item within the Bournville range, which features dark chocolate products. But they were confirmed as discontinued in June after their launch just five years ago in October 2020.
9 News
2 days ago
- Business
- 9 News
World's largest Cadbury chocolate distribution centre to open in Melbourne
The makers of Cadbury, Mondelez International, are setting up a $130 million centre in Melbourne's west.
The Age
2 days ago
- Business
- The Age
World's largest Cadbury chocolate distribution centre to open in Melbourne
The makers of Cadbury, Mondelez International, are setting up a $130 million centre in Melbourne's west.
