by Christopher Freeburn | October 12, 2012 12:19 pm
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.
Source URL: http://investorplace.com/2012/10/kraft-to-put-breakstone-dairy-business-up-for-sale/
Short URL: http://investorplace.com/?p=244303
Copyright ©2013 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.