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.
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
- Danone's Q1: four things to learn
- Interview: Sir Kensington's on sale to Unilever
- Column: Why snacking is the new meal
- Nestle Q1 update: four things to learn
- Interview: "Disruptive" snack brand Hippeas
- Tyson shops Sara Lee bakery, Kettle and Van's
- Nestle to cut UK confectionery jobs
- PepsiCo affirms full-year target as Q1 hits mark
- Icelandic to sell Saucy Fish Co. owner Seachill
- Tyson to buy burger-to-entree firm AdvancePierre