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Kraft Foods

From Alfawiki
Kraft Foods Group, Inc.
Company typePublic
IndustryFood manufacturing
PredecessorKraft Foods Inc.
FoundedOctober 1, 2012; 14 years ago (2012-10-01) in Chicago, Illinois, U.S.
DefunctJuly 2, 2015 (2015-07-02)
FateMerged with Heinz to form Kraft Heinz
Headquarters
Chicago
,
United States
Area served
North America
ProductsBeverages, cheese, dairy, snack foods, convenience foods

Kraft Foods Group, Inc. was a U.S.-based food manufacturing corporation that emerged as a spin-off from Kraft Foods Inc. on October 1, 2012, with its headquarters located in Chicago, Illinois. On July 2, 2015, it merged with Heinz, resulting in the creation of Kraft Heinz, which became the fifth-largest global entity in the food and beverage sector. This union, supported by Heinz's owners Berkshire Hathaway and 3G Capital, brought together Kraft’s diverse product lineup under a leading multinational food processing company.

Separation of Kraft Foods Group from Kraft Foods Inc.

In August 2011, Kraft Foods Inc. declared its intention to divide into two publicly traded entities: one focusing on snack foods and the other on grocery products. Subsequently, on April 2, 2012, Kraft submitted a Form 10 Registration Statement to the SEC to facilitate the spin-off of its North American grocery operations.

The spin-off took effect on October 1, 2012, when Kraft Foods Inc. separated its North American grocery division as Kraft Foods Group, Inc. The remaining portion of the company was rebranded as Mondelēz International, Inc., concentrating on global snack and confectionery markets. Burt P. Flickinger III from Strategic Resource Group observed that this approach "succeeded for Mondelez but failed for Kraft."

On November 19, 2013, an arbitration decision required Starbucks to compensate Kraft Foods Inc. $2.7 billion due to premature contract termination; this amount was paid to Mondelēz International.

In October 2013, Kraft declared plans to eliminate artificial colorings from three macaroni and cheese products marketed toward children, excluding its classic elbow-shaped variety. This decision followed a petition advocating for the removal of synthetic dyes Yellow 5 and Yellow 6.

By August 2014, Kraft reached an agreement with McDonald's to distribute its McCafé coffee brand through grocery retail channels beginning in 2015.

Merger between Kraft and Heinz

On March 25, 2015, Kraft Foods Group Inc. announced its intention to merge with the H.J. Heinz Company, which was owned by 3G Capital and Berkshire Hathaway Inc. Following this announcement, Kraft’s stock experienced approximately a 17 percent increase during premarket trading. This deal marked Heinz’s re-entry into public markets after its acquisition two years earlier. The merger was finalized on July 2, 2015.

Sponsorships and promotions

Kraft maintained official partnerships and sponsorships with both Major League Soccer and the National Hockey League. Since 2006, Kraft Foods has been the sponsor of Kraft Hockeyville, a reality competition produced by CBC/SRC Sports that awards communities funding for arena improvements and the opportunity to host an NHL preseason game. In 2015, this contest expanded its reach into the United States.

Between 2002 and 2014, Kraft sponsored the Kraft Nabisco Championship, a major event on the LPGA tour. Additionally, from 2010 through 2012, it sponsored the Kraft Fight Hunger Bowl, a college football postseason bowl game.

Brands

Kraft’s primary product categories included beverages, cheese, dairy items, snack foods, and convenience foods. Key brands under its portfolio were:

See also

External links

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