Kraft Foods’ surprise decision to split itself in two dominated the industry headlines this week. Elsewhere, there had also been speculation that Unilever could sell its food operations and Kraft’s move prompted discussions over whether PepsiCo could look to break up its businesses. The US also saw the latest food safety scare, with Cargill pulling millions of tonnes of meat over a possible link to a fatal salmonella outbreak. Click on the headlines for more.

Kraft stuns industry with split
Over a year since Kraft Foods acquired UK confectioner Cadbury, the US food giant has announced plans to divide itself in two – and create a North American grocery business and a global snacks maker. What prompted Kraft’s surprise decision? And could the likes of PepsiCo follow?

US: Cargill recalls turkey products amid salmonella scare
Cargill has recalled around 36m pounds of fresh and frozen ground turkey products as an investigation into a fatal salmonella outbreak in the US continues.

UK: Analysts speculate over future of Unilever’s food operations
Analysts have suggested that Unilever may look to sell its food division in order to fund acquisitions in the home and personal care sector.

On the money: Premier Foods H1 “poor by any measure” – CFO
The CFO of Premier Foods plc, Jim Smart, today (5 August) described the company’s first-half trading results today as being “poor by any measure”.

INDIA: Danone to acquire Wockhardt Group’s nutrition arm 
Danone has signed a deal to buy the nutrition unit of India’s Wockhardt Group, days after reports that the companies were in talks.

Category crunch: The rise of gluten-free foods in the UK
Improving coeliac diagnosis rates and the increasing number of people becoming aware of the benefits of a gluten-free diet are driving growth in the sector in the UK. In part one of this month’s category crunch, Petah Marian uncovers the opportunities that remain in the sector.

Talking shop: Poundland puts expansion plans into action with Ireland move
The recent headlines from Ireland’s retail sector have focused on Superquinn‘s fall into receivership and Musgrave Group’s plans to buy the business. However, with the economy in the doldrums, discount retailers have been gaining more ground. This week, UK retailer Poundland announced plans to open stores in Ireland and industry watchers believe the business has potential across the Irish Sea. Michelle Russell reports.

On the money: Delhaize focuses on operational improvements
The CEO of Delhaize today (5 August) highlighted the steps the retailer was taking to improve operations after it booked a fall in first-half profits.

Sustainability Watch – PepsiCo finds health drive hard going
PepsiCo’s UK and Irish arm has made slower progress in its bid to boost sales of healthier products than it might have hoped. Ben Cooper examines how the company has reported its performance against the 27 commitments announced last year and the reaction it has received.

UK: More jobs under threat at Vion
Dutch food group VION plans to revamp a poultry site in the UK, a move that could lead to the loss of 115 jobs.