Kraft Heinz said Tuesday it will sell several of its cheese businesses to a US subsidiary of France’s Groupe Lactalis for $ 3.2 billion.
| 09/15/2020 | ionicons-v5-c12: 27 | . |
New York.- The agreement, which is expected to close in the first half of 2021, includes the businesses of natural, grated, cultured and special cheeses of Kraft Heinz in the US and its cheese business grated in Canada.
« We believe that these businesses cheese and dairy will prosper in the hands of a global dairy company like Groupe Lactalis« said the executive director of Kraft Heinz, Miguel Patricio. « At the same time, the transaction will allow us to build a sustainable competitive advantage in businesses where we have stronger brand equity, greater prospects for growth, and can utilize our manufacturing scale and consumer-based platform approach. This is a great example of agile portfolio management in operation « .
In a statement, the food giant announced a new business strategy within which it also plans to cut 2 billion in costs until 2024 and increase its investment in areas such as marketing.
In recent years, the food group has struggled with the decline of some of its better-known brands such as Oscar Mayer or Velveeta, with consumers less and less interested in packaged meals or seen as unhealthy and with increased competition.
In 2019, the company announced a depreciation of up to $ 15.4 billion on two of its main brands, Kraft and Oscar Mayer.
Patricio, who took over as head of the company last year, assured that the new strategy offers « a clear path to rebuild Kraft Heinz as the industry leader « you can be.
The company plans to use some of the money it saves from its spending cuts, which it did not elaborate on, to try to relaunch certain brands and increase marketing spending by 30% overall.
Also, Kraft Heinz It updated its forecasts for the remainder of this year, as business is doing better than expected, after the coronavirus pandemic has prompted many consumers to stockpile packaged meals, according to analysts.
With information from . and .