Blog: Kraft sweetens outlook for Peltz
Dean Best | 3 December 2007
After last week’s good news at Heinz, activist investor Nelson Peltz will also be cheered by the goings-on at another of his investments, Kraft Foods.
Last week, Kraft closed the acquisition of Danone’s biscuits business. The business will give Kraft a much needed presence in Europe and will become its biggest worldwide, accounting for a fifth of its turnover. Meanwhile, reports claimed that, in the wake of the Danone deal, Kraft is looking to build a cookie plant in Russia, a key emerging market for biscuits. Kraft remained tight-lipped over its plans but it is likely to have earmarked Russia as a key growth market and crucial to its plans outside the US.
Russia seems to be high on the list of most of the industry’s leading players at the moment. Last week, Nestlé snapped up Russian confectioner Ruzskaya Confectionery Factory (RKF) in a bid to tap into booming chocolate sales in the country. Chocolate consumption in Russia is forecast to jump by a third over the next four years, a projection that has compelled the likes of Kraft, Mars and Cadbury to spend more money in Russia.
However, smaller players, like Cloetta Fazer, Scandinavia’s largest confectioner, are also eyeing the market with interest. Last week, just-food caught up with Cloetta Fazer boss Jesper Aberg who spoke of the company’s ambitions to move into Russia and its plans to expand outside chocolate, a strategy it again followed on Friday with the acquisition of Finnish gum maker Fennobon.
And with Russia’s retail sector in good health, Tesco boss Sir Terry Leahy has hinted the UK grocer could also look to enter the market. In the next decade, Tesco is aiming to double sales outside in the UK, thereby generating over half its business overseas. The company has been busy getting its US venture Fresh & Easy off to a good start in recent months but its international ambitions will not just be limited to those across the Atlantic.
Ask any FMCG executive to list the trends shaking up the sector and digital and e-commerce will be pretty high on the list. Drill down into that and Amazon will be one of the subjects in the digital s...
Since Theresa May took over as UK Prime Minister in the wake of the country's referendum vote to quit the European Union, she and her ministers have been at pains not to divulge their negotiating posi...
Greenpeace's long-running campaign against UK tuna brand John West, owned by seafood giant Thai Union, is now directing its fire against Sainsbury's....
- Unilever 2016 investor day - the top takeaways
- The key questions for digital strategists in 2017
- Wessanen's move for Spain's Biogran - analysis
- Have food promotions reached tipping point?
- Burger King, Jollibee: foodservice focus, Nov 2016
- General Mills jobs to go in business revamp
- Verlinvest, China Resources invest in Oatly
- B&G acquires pasta sauce group Victoria Fine Foods
- Japan's Nagatanien buys Chaucer Food Group
- Tyson sets up US$150m investment fund