Kraft Foods Inc. plans is to split into two companies: Kraft Foods Group (KRFT) and Mondelez International (MDLZ). These would also trade publicly and their main focus will be placed on international snack brands.
Kraft is the largest food maker, with recent changes of acquisitions, and other changes that increased the company’s reach, the food industry did not see this split coming.
The company’s intention is to separate and distinguish the success of each, and be able to identify their individual needs and priorities.
The companies will target two different portions of the food market, providing investors with two different opportunities.
The snack business is expected to grow quickly, and the grocery will strongly depend on the power of its North American brands.
Kraft’s second-quarter earnings climbed 4 percent or 55 cents per share and revenues increased by 13%.