Kraft to Put Breakstone Dairy Biz Up for Sale

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

   

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).

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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