Milling & Baking News Corporate Profiles - October 2011 - (Page 100)

Company Overview Kraft Foods Inc. Company to split into two publicly-traded companies by end of 2012 n Aug. 4, Kraft Foods Inc., Northfield, Ill., announced plans to split into two independent publiclytraded companies, with one to be focused on global snacks and with estimated annual revenue of $32 billion, and the other a North America grocery business with estimated revenue of about $16 billion. Kraft said it hopes to launch the new companies before year-end 2012. “We have built two strong but distinct portfolios,” said Irene Rosenfeld, chairman and chief executive officer. “Our strategic actions have put us in a position to create two great companies, each with leadership, resources and strong market positions to realize their full potential. The next phase of our development recognizes the distinct priorities within our portfolio. The global snacks business has tremendous opportunities for growth as consumer demand for snacks increases around the world. The North American grocery business has a remarkable set of iconic brands, industryleading margins and the clear ability to generate significant cash flow.” The global snacks business will consist of the current Kraft Foods Europe and Developing Markets unit as well as the North American snacks and confectionery O businesses. The North American grocery business will consist of U.S. Beverages, Cheese, Convenient Meals and Grocery segments as well as the non-snack categories in Canada and food service. The company said it believes creating two companies will allow each business to focus on distinct strategic priorities and to allocate resources and deploy capital in a manner consistent with its strategic priorities in order to optimize returns to shareholders. In addition, investors will be able to value the companies on their specific operational and financial characteristics. “With the addition of the Cadbury business, the North American snack portfolio now has the opportunity … to become a truly ubiquitous snacking powerhouse,” Ms. Rosenfeld said in a conference call on Aug. 4. “Specifically, it will leverage our global innovation platforms in biscuits, chocolate, gum and candy. And will also deliver significant growth from investments in direct-store delivery and in instant consumption channels.” Ultimately, the plan will help keep the company from becoming too thinly spread. For the second quarter ended June 30, the company had earnings of $976 million, equal to 55c per share on the common stock, up 4% from $937 million, or 54c per share, Irene Rosenfeld during the same quarter of the previous year. Revenue for the quarter was $13,878 million, up 13% from $12,253 million during the same quarter of the previous year. “Our second-quarter results reflect the benefits of our virtuous cycle,” Ms. Rosenfeld said. “Consumers are responding well to our investments in marketing and innovation, and our focus on end-to-end cost management is paying off. As a result, we’re successfully managing higher input costs through pricing and productivity.” Kraft also got into a legal dispute during the year with Starbucks as the coffee giant ended a distribution agreement. Ultimately, Kraft’s efforts to prevent Starbucks from ending the agreement were denied. CP F ast acts The company plans to split into two publiclytraded companies by the end of 2012. One of the companies will be a global snacks business with revenue of about $32 billion. The North American grocery business will have annual revenue of about $16 billion. 100 \ October 2011 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2011

Milling & Baking News Corporate Profiles - October 2011
Contents
Editorial - Headwinds yes, but improvement looms
Grain-based foods
Frozen meals
Soup
Beverages
Beef, chicken and pork
Dairy
Confectionery
Food service
Company Overview - Grupo Bimbo S.A.B. de C.V.
Company Overview - Campbell Soup Co.
Company Overview - The Coca-Cola Co.
Company Overview - ConAgra Foods, Inc.
Company Overview - Groupe Danone S.A.
Company Overview - Dean Foods Co.
Company Overview - Diamond Foods, Inc.
Company Overview - Dunkin’ Brands Group Inc.
Company Overview - Flowers Foods, Inc.
Company Overview - General Mills, Inc.
Company Overview - Hain Celestial Group Inc.
Company Overview - The H.J. Heinz Co.
Company Overview - The Hershey Co.
Company Overview - The Kellogg Co.
Company Overview - Kraft Foods Inc.
Company Overview - Krispy Kreme Doughnuts Inc.
Company Overview - Mars, Inc.
Company Overview - Nestle S.A.
Company Overview - Panera Bread Co.
Company Overview - PepsiCo, Inc.
Company Overview - Ralcorp Holdings, Inc.
Company Overview - Sara Lee Corp.
Company Overview - Smithfield Foods, Inc.
Company Overview - J.M. Smucker Co.
Company Overview - Snyder’s-Lance, Inc.
Company Overview - Tyson Foods, Inc.
Company Overview - Unilever P.L.C.
Ad Index

Milling & Baking News Corporate Profiles - October 2011

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