BusinessWeek reports on the efforts of Kraft CEO Roger K. Deromedi to divest non-core businesses and focus only on the “blockbuster brands” that he believes can dominate their category world-wide, and that “consumers and retailers are more excited about.”
However, the article notes, while analysts generally endorse the strategy of getting rid of non core businesses – the company has just sold Life Savers and Altoids to Wrigley, and Oscar Mayer is believed to be the next likely candidate for a sale – it remains for Deromedi to figure out how to generate more sales and profits out of the brands that remain.
However, the article notes, while analysts generally endorse the strategy of getting rid of non core businesses – the company has just sold Life Savers and Altoids to Wrigley, and Oscar Mayer is believed to be the next likely candidate for a sale – it remains for Deromedi to figure out how to generate more sales and profits out of the brands that remain.
- KC's View:
- The strategy probably makes sense, though we have to wonder if the best way to sell a business is by telling potential buyers that it is one that retailers and consumers just aren’t all that excited about.
