PORTLAND, Ore. – Kraft Foods Inc. said Thursday it plans to split into two publicly traded companies, with one focusing on its international snack brands like Trident gum and Cadbury chocolates and the other on its North American grocery business that includes Maxwell House coffee and Oscar Mayer meats.
Kraft is the latest in a string of U.S. companies including rival Sara Lee Corp. to separate its business to cater to different niche markets.
The move surprised industry watchers because Kraft, the nation’s largest food maker, long had touted its scale and reach as its strength.
Kraft officials said Thursday that after several years of acquisitions, sales and other changes, it became clear that the company had built two “strong, but distinct, portfolios” and the next step is to recognize the separate priorities for each.
“Simply put, we have now reached a stage in our development with a global snacks and grocery businesses in North America in which each benefit from standing on their own and focusing on their unique drivers of success,” Kraft CEO Irene Rosenfeld told investors Thursday during a conference call.