Blog: Dean BestWill Ralcorp thrive in new Post?

Dean Best | 15 November 2007

Cereal gave a good kick-start to the day for both Kraft Foods and US private-label firm Ralcorp Holdings this morning (15 November).

Ralcorp has snapped up Kraft’s US cereals business Post in a deal worth US$2.6bn.

For Ralcorp, a purveyor of private-label products, the deal gives it a stable of popular US brands. For Kraft, the sale represents another move to shed businesses it no longer sees as key to its future success.

However, for all Ralcorp’s optimism, there will be questions over how its retail customers in the US will view a brand now belonging to one of their key private-label suppliers.

One analyst asked Ralcorp today how the company thought Post would fare under its ownership; would retailers be “amenable” to a private-label firm running the brand?

Ralcorp co-CEO and president David Skarie said he “couldn’t speak for our customers” but added that the company would look to manage Post as a “distinct business”.

Ralcorp sees the acquisition of Post, the third-largest branded cereals business in the US, as “transformational”. It will hope it can soon transform its reputation as a seller of strong branded goods in the eyes of US retailers.


Sainsbury's pulls the price lever

Sainsbury's, the UK's second-largest grocer, has set out plans for lower prices on a range of products, a move announced amid signs of pressure on its market share....


Intermarche broke rules with Nutella promo, French watchdog says

The pandemonium in stores of Intermarché as shoppers scrambled to grab jars of cut-price Nutella went viral - but the country's competition watchdog has announced the French retailer broke rules on se...


Big Food in investor spotlight this week at CAGNY

The senior management of a number of the major food manufacturers operating in the US will be in Florida this week for a key date on investor calendars....

Forgot your password?