Separating the Oreo from the Jell-O
Kraft steals the headlines again with the decision to split the company into two separate parts, a North American grocery business and a global snack powerhouse.
The high-growth snacks company, with annual sales of $32 billion and brands such as Oreo, Trident and Cadbury, would include its European and developing markets units as well as its North American snacks and confectionery businesses.
Commentators have not been particularly surprised as the snack division was growing at a faster pace than the grocery segment. Essentially, it comes down to confirming that emerging markets continue to expand rapidly, though not always smoothly. They generated sales of $13.6 billion for Kraft in 2010 – as well as a few trademark lawsuits. Most companies will do well taking emerging markets into account in their strategic planning.
Best regards,
Katrine Kjoeller, Editor
Sweets & Snacks Europe
