Analysts speculate that Kraft’s planned public offering presages an eventual spin-off of Philip Morris’s food business. But chairman Geoffrey Bible denies that the company will break out either Kraft or sister division Miller Brewing Co.
“We didn’t buy them to sell or give away,” Bible says, but adds that Kraft will watch for under-performing brands to possibly shed and may “tack on small acquisitions [in Europe], but nothing major.”
Kraft will keep the Nabisco name alive. “It’s a great brand name. We’ll exploit it as much as we possibly can,” Bible says. Nabisco chairman Jim Kilts – ironically, a former Kraft USA president – won’t stay with the new company after the merger.
“I have the utmost respect for Jim Kilts, [but] “we have a terrific infrastructure of talented managers who worked their way up, and our 11 divisions can absorb the Nabisco business with our existing staff,” Bible says.
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