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Kraft looking for more purchases
Kraft Foods Inc, the largest US food company, is looking for acquisitions in health foods, snacks and drinks, according to an interview in the online edition of the Financial Times on Monday.
Kraft Foods Inc, the largest US food company, is looking for acquisitions in health foods, snacks and drinks, according to an interview in the online edition of the Financial Times on Monday.
Kraft`s joint chief executives, Betsy Holden and Roger Deromedi, told the FT they were looking for "tack-on" acquisitions, and were planning to use recent purchases as platforms for a broader range of products.
Holden, who is responsible for Kraft`s North American operations, said: "We are focusing on the snack and beverage areas, U.S. convenient meals, health and wellness, and building in developing markets."
Deromedi, head of Kraft`s international business, said that many of Kraft`s industry peers "have tail businesses that don`t fit in their focus."
Although the food industry has been through a wave of large deals, beginning with Kraft`s purchase of Nabisco and the sale of Bestfoods to Unilever, analysts and investment bankers expect a strong pace of smaller-scale activity from disposals and auctions. Holden said Kraft`s acquisition policy would adhere to strict criteria.
"We look for growing categories, strong brands we can build, attractive double digit financial returns and (acquisitions which are) quickly accretive to our cash," she said.
She added that Kraft was eager to use Balance Bar and Boca Burger, two brands acquired before Nabisco, as platforms for a much broader range of "functional" food products.
Balance -- which makes energy bars offering a mix of proteins, carbohydrates and fats -- was "a great trademark to extend," she said, and Boca could be used as a brand for other soy products.
Deromedi said Kraft was also focusing on co-branding opportunities with Nabisco`s stable of biscuit and snack brands. He cautioned that Kraft would not rush to make larger acquisitions. "We want to make sure we do the Nabisco integration well," he said: "If you try to do too much too fast you don`t do it well."
Bureau Report
Holden, who is responsible for Kraft`s North American operations, said: "We are focusing on the snack and beverage areas, U.S. convenient meals, health and wellness, and building in developing markets."
Deromedi, head of Kraft`s international business, said that many of Kraft`s industry peers "have tail businesses that don`t fit in their focus."
Although the food industry has been through a wave of large deals, beginning with Kraft`s purchase of Nabisco and the sale of Bestfoods to Unilever, analysts and investment bankers expect a strong pace of smaller-scale activity from disposals and auctions. Holden said Kraft`s acquisition policy would adhere to strict criteria.
"We look for growing categories, strong brands we can build, attractive double digit financial returns and (acquisitions which are) quickly accretive to our cash," she said.
She added that Kraft was eager to use Balance Bar and Boca Burger, two brands acquired before Nabisco, as platforms for a much broader range of "functional" food products.
Balance -- which makes energy bars offering a mix of proteins, carbohydrates and fats -- was "a great trademark to extend," she said, and Boca could be used as a brand for other soy products.
Deromedi said Kraft was also focusing on co-branding opportunities with Nabisco`s stable of biscuit and snack brands. He cautioned that Kraft would not rush to make larger acquisitions. "We want to make sure we do the Nabisco integration well," he said: "If you try to do too much too fast you don`t do it well."
Bureau Report