Kraft to Put Breakstone Dairy Biz Up for Sale

It may sell additional units to focus on its top-selling brands

   

Kraft to Put Breakstone Dairy Biz Up for Sale

Kraft Foods (NASDAQ:KRFT) is looking to sell its Breakstone dairy products business. Inside sources told Bloomberg that the cottage cheese and sour cream brand could be valued at $400 million.

Among potential buyers for Breakstone is Mexico’s Grupo Lala, which is also reportedly considering acquiring Morningstar, the commercial milk distribution business owned by Dean Foods (NYSE:DF).

kraft foods 120 Kraft to Put Breakstone Dairy Biz Up for Sale
Mondelez and Kraft Still Face Big Challenges

News of the potential sale of Breakstone comes less than two weeks after Kraft split into two separate companies: Kraft Foods Group, which comprises its U.S. grocery business and Mondelez International (NASDAQ:MDLZ), which distributes snack foods internationally.

Selling Breakstone may be part of a larger strategic effort to concentrate on higher-profit brands by Kraft. Analysts predicted more sales of smaller brands from the company’s portfolio as it narrows its product focus.

Shares of Kraft Foods Group rose more than 1% in mid-day trading on Friday.


Article printed from InvestorPlace Media, http://investorplace.com/2012/10/kraft-to-put-breakstone-dairy-business-up-for-sale/.

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