Kraft to Put Breakstone Dairy Biz Up for Sale

by Christopher Freeburn | October 12, 2012 12:19 pm

Kraft to Put Breakstone Dairy Biz Up for Sale

Kraft Foods (NASDAQ:KRFT[1]) is looking to sell[2] 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┬ácommercial milk distribution┬ábusiness owned by Dean Foods (NYSE:DF[3]).

News of the potential sale of Breakstone comes less than two weeks after Kraft split into two separate companies[4]: Kraft Foods Group, which comprises its U.S. grocery business and Mondelez International (NASDAQ:MDLZ[5]), 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.

Endnotes:
  1. KRFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=KRFT
  2. looking to sell: http://www.businessweek.com/news/2012-10-11/kraft-foods-said-to-seek-buyer-for-breakstone-s-dairy-business
  3. DF: http://studio-5.financialcontent.com/investplace/quote?Symbol=DF
  4. Kraft split into two separate companies: http://investorplace.com/2012/10/kraft-spin-off-mondelez-starts-trading-today/
  5. MDLZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=MDLZ

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