Kraft spinoff splits food giant in two

Kraft spinoff of its global snack operation will mean that brands including Oreo and Nabisco will be under a new label called Mondelez International Inc. The North American grocery division will carry the Kraft name after the Kraft spinoff and include Velveeta, Miracle Whip and Oscar Mayer.

Handout/Reuters/File
Tim Cofer, head of Mondelez Europe, poses with products in this undated handout photo made available on October 1, 2012. Mondelez International Inc. ranks as the world's biggest chocolate, candy and biscuit maker after the Kraft spinoff. Mondelez, whose stable of brands includes Cadbury and Milka chocolate, was launched on Tuesday after a demerger from Kraft's North American grocery business, still called Kraft.

Kraft Foods Group and Mondelez International are now trading as two separate public companies.

Kraft Foods Inc. decided to spin off its global snack business in March. That company, called Mondelez International Inc., will be home to global brands including Oreo, Cadbury and Nabisco and trade under the ticker "MDLZ."

Mondelez's stock gained 2 cents to $27.84 in Tuesday morning trading.

The North American grocery business will continue to carry the name Kraft and include Velveeta, Miracle Whip and Oscar Mayer. Its ticker will change to "KRFT" from "KFT"

Shares of Kraft Foods Group, based in Northfield, Ill., added 61 cents to $44.71.

Scott Mushkin of Jefferies started coverage of Kraft Foods Group Inc. with a "Buy" rating and $50 price target. The analyst said while the company only runs in the slower growing North American market, it is a shareholder-friendly operator with strong brands.

"Management's strong track record in the consumer products space gives us confidence that it can execute on the ambitious plans for Kraft," Mushkin wrote in a client note.

Citi Investment Research's David Driscoll gave Kraft Foods Group a "Neutral" rating and $48 price target. The analyst feels thatKraft can increase its sales by 2 percent to 3 percent and boost earnings per share by 7 percent to 9 percent over the long term by improving margins and reinvesting savings into new products and marketing.

You've read  of  free articles. Subscribe to continue.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.