retail news in context, analysis with attitude

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.
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.