Kraft Foods reportedly is mulling whether to sell its Oscar Mayer and Post Cereals businesses.
Kraft has met with investment banks to gauge interest and estimate a possible price tag, according to news reports. The New York Post speculated that Oscar Mayer could fetch $1 billion. Kraft also is said to be considering the sale of Altoids and LifeSavers (Oct. 19 Xtra). Kraft has been shopping its Breyers yogurt business via Citigroup (Sept. 15 Xtra).
A Kraft spokesperson said the company does not comment on speculation about mergers, acquisitions or divestitures. Divestiture would fit Kraft’s plan to “transform its portfolio” as one of four steps in its “sustainable growth plan” begun in January.
“We continue to evolve our new product development process by focusing on fewer, bigger and better ideas, and improving our speed of execution,” said CEO Roger Deromedi in a September statement to analysts.
J. Walter Thompson, Chicago, handles Oscar Mayer advertising; Ogilvy & Mather, New York, handles Post.
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