Kraft Foods is reportedly seeking to sell its Breyers Yogurt business and may put other non-core brands on the block.
Kraft hired Citigroup to find buyers for the $118 million brand, according to news reports. Kraft launched Breyers Crème Saver Smoothies drinkable yogurt last year, a flanker to its Breyers Crème Savers cup yogurt. Both borrow the Crème Savers candy name from Kraft’s confectionary division. Kraft spent $3.4 million to advertise Breyers yogurt in 2003, but only $68,000 in the first half of 2004, per TNS Media Intelligence/CMR.
Divestiture would fit Kraft’s plan to “transform its portfolio” as one of four steps in its “sustainable growth plan” begun in January. “We continue to evolve our new product development process by focusing on fewer, bigger and better ideas, and improving our speed of execution,” said CEO Roger Deromedi in a statement to analysts last week. The other three initiatives are to “build superior brand value … expand global scale and drive out costs and assets,” Kraft said.
Analysts speculate that Kraft may sell other non-core brands such as Milk-Bone dog biscuits and the Planters nuts and confectionary brands that Kraft got when it bought Nabisco. A Kraft spokesperson declined to comment on any divestiture plans.
Northfield, IL-based Kraft sold its Breyers Ice Cream business to Good Humor (now owned by Unilever) in 1993.
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