Warren Buffett, the billionaire American investor, has become the largest individual shareholder in Kraft Foods after amassing an 8.6% stake worth some US$4.32bn.
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The purchase of the shares, which took place last year and was conducted through Buffett’s company, Berkshire Hathaway, was confirmed in a filing with the Securities and Exchange Commission (SEC).
Last month, Kraft reported a 6.6% fall in underlying operating income for 2007 to US$4.9bn, hit by the spike in global dairy prices over the last 12 months.
Net sales rose by 5.1%, on an organic basis, to $35.7bn but Kraft said rising dairy costs – as well as investment in developing new products – had offset revenue gains.
However, in spite of the full-year results, analysts have seen Buffett’s investment in Kraft as a vote of confidence from an experienced corporate player with an eye for solid brands and franchises.
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