Altria Group’s long-awaited spin off of Kraft Foods is finally underway.
The spin off gives Kraft a new chairman, CEO Irene Rosenfeld, and more flexibility in business management and marketing.
Altria announced yesterday that it has spun off Kraft from its Philip Morris tobacco business, after several months of anticipation. The separation will make it easier for Kraft to make acquisitions, using its own stock as currency. Plus, it will be easier for Kraft to recruit independent members for its board of directors now that the food company is no longer affiliated with the tobacco business.
New York-based Altria now owns 100% of the common stock of Philip Morris USA, Philip Morris International and Philip Morris Capital Corp., as well as nearly 29% of SABMiller.
Rosenfeld, who took charge at Kraft in June 2006, replaces Altria Chairman-CEO Louis Camilleri as the chair of Kraft’s board of directors. Camilleri remains on the board at Kraft, and at the helm of Altria.
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