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The New York Times reports this morning that Kraft Foods plans to “split into two companies by spinning off its North American grocery business from its global snacks enterprise.” The decision comes a year and a half after Kraft acquired Cadbury, and is expected to take more than a year to complete.

In its announcement, Kraft said that it has “built a global snacking platform and a North American grocery business that now differ in their future strategic priorities, growth profiles and operational focus ... Detailed review by the board and management has shown that these two businesses would now benefit from being run independently of each other.”

According to the story, “The new snacks company will combine the Kraft Foods Europe and developing markets units as well as the North American snacks and confectionery business, with anticipated yearly revenue of $32 billion. Three-quarters of that revenue would be from international operations, and 42 percent from emerging markets, the company said. Its brands will include Oreo cookies, Cadbury and Milka chocolates, Tang drink powder and Trident gum, among others.

“The North American spinoff is expected to have about $16 billion in annual revenue from Kraft’s cheese, beverage and meals businesses.”
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