Kraft Foods

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Kraft Foods Group, Inc.
Company type Division [1]
Nasdaq: KRFT
ISIN US50076Q1067  OOjs UI icon edit-ltr-progressive.svg
Industry Food processing
Predecessor Kraft Foods Inc.
FoundedOctober 1, 2012;11 years ago (2012-10-01)
Founder James L. Kraft
DefunctJuly 2, 2015;8 years ago (2015-07-02)
FateMerged with Heinz to form Kraft Heinz, remaining as a division
Successor Kraft Heinz
Headquarters Chicago, Illinois, United States
Area served
Worldwide
Products List of products
Number of employees
22,500 (2015)  OOjs UI icon edit-ltr-progressive.svg
Parent Kraft Heinz
Website kraftheinzcompany.com

Kraft Foods Group, Inc. (doing business as Kraft Foods Group) was an American food manufacturing and processing conglomerate, [2] split from Kraft Foods Inc. on October 1, 2012, and was headquartered in Chicago, Illinois. It became part of Kraft Heinz on July 2, 2015. [3]

Contents

A merger with Heinz, arranged by Heinz owners Berkshire Hathaway and 3G Capital, [4] [5] was completed on July 2, 2015, forming The Kraft Heinz Company, the fifth-largest food and beverage company in the world. [6] [7]

History

Spinoff of Kraft Foods Group from Kraft Foods Inc.

In August 2011, Kraft Foods Inc. announced plans to split into two publicly traded companies — a snack food company and a grocery company. [8]

On April 2, 2012, Kraft Foods Inc. announced that it had filed a Form 10 Registration Statement to the SEC to split the company into two companies to serve the "North American grocery business". [9]

On October 1, 2012, Kraft Foods Inc. spun off its North American grocery business to a new company called Kraft Foods Group, Inc. The remainder of Kraft Foods Inc. was renamed Mondelēz International, Inc., and was refocused as an international snack and confection company. [10] Burt P. Flickinger III of Strategic Resource Group said the strategy "worked for Mondelez, but not for Kraft." [11]

On November 19, 2013, an arbitration ruling ordered Starbucks to pay Kraft Foods Inc. $2.7 billion because of an early contract termination. The money would go to Mondelēz International, Inc. [12] In October 2013, Kraft announced that it would remove artificial dyes from three macaroni and cheese varieties made in kid-friendly shapes, but not its plain elbow-shaped Kraft Macaroni and Cheese product with "original flavor". [13] This was in response to a petition by activist Vani Hari and blogger Lisa Leake who delivered a petition to the company to remove controversial synthetic dyes Yellow 5 (labeled as Tartrazine) and Yellow 6 from its signature macaroni and cheese products. [14] [15] [16]

Kraft and Heinz merger

On March 25, 2015, Kraft Foods Group Inc. announced that it would merge with the H.J. Heinz Company, owned by 3G Capital and Berkshire Hathaway Inc. [17] Kraft's shares rose about 17 percent in premarket trading after the announcement of the deal, which will bring Heinz back to the public market following its takeover over two years prior. [18] The companies completed the merger on July 2, 2015. [19]

Sponsorships and promotions

Kraft is an official partner and sponsor of both Major League Soccer and the National Hockey League. Since 2006, Kraft Foods has sponsored Kraft Hockeyville , a reality television series produced by CBC/SRC Sports, in which communities demonstrate their commitment to the sport of ice hockey in a contest revolving around the theme of community spirit. The winning community gets a cash prize dedicated to upgrading their hometown arena, as well as the opportunity to host an NHL preseason game. In 2007, it was then relegated to segments aired during Hockey Night in Canada . In 2015, Kraft Hockeyville was expanded to the United States with a separate competition for communities there.

From 2002 to 2014, Kraft sponsored the Kraft Nabisco Championship, one of the four "majors" on the LPGA tour. The company also sponsored the Kraft Fight Hunger Bowl, a post-season college football bowl game, from 2010 to 2012.

Brands

The old Kraft logo still seen on some Kraft-branded products Kraft logo.svg
The old Kraft logo still seen on some Kraft-branded products
The new Kraft logo used since its soft-launch in April 2024 on few products Kraft 2024.svg
The new Kraft logo used since its soft-launch in April 2024 on few products

The company's core businesses are in beverage, cheese, dairy foods, snack foods, and convenience foods. Kraft's major brands include: [20]

Kraft Dressings

See also

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References

  1. ↑ "Prospectus Filed Pursuant to Rule 424". The Kraft Heinz Company. July 2, 2015. Archived from the original on February 16, 2016. Retrieved February 11, 2016.
  2. ↑ "Kraft Foods Inc". Funding Universe. 2002. Archived from the original on October 17, 2006. Retrieved March 10, 2008.
  3. ↑ "Kraft Heinz moving Illinois headquarters from Northfield to Chicago". www.bizjournals.com. Retrieved September 16, 2018.
  4. ↑ Giammona, Craig; Boyle, Matthew (March 25, 2015). "Kraft Will Merge With Heinz in Deal Backed by 3G and Buffett". Bloomberg News . Retrieved July 8, 2018.
  5. ↑ "Kraft Foods to merge with ketchup maker Heinz". Reuters. March 25, 2015. Retrieved March 25, 2015.
  6. ↑ Feeney, Nolan (March 25, 2015). "Kraft and Heinz Merge to Become World's 5th-Largest Food Company". Time .
  7. ↑ Coyne, Justine (July 2, 2015). "Goodbye H.J. Heinz Co.; Kraft Heinz merger a done deal". Pittsburgh Business Times . Retrieved July 3, 2015.
  8. ↑ "Kraft Foods Announces Intent to Create Two Independent, Publically[sic] Traded Companies; Would Create a High-Growth Global Snacks Company and a High-Margin North American Grocery Business, Each with a Portfolio of Iconic Brands" (Press release). Kraft Foods. August 4, 2011. Retrieved March 5, 2024– via PR Newswire.
  9. ↑ "Kraft Foods Announces Filing Of Form 10 Registration Statement For Planned Spin-Off Of North American Grocery Company" (Press release). Kraft Foods. April 2, 2012. Retrieved March 5, 2024– via PR Newswire.
  10. ↑ Rushe, Dominic (March 21, 2012). "Kraft spins off snacks business into new Mondelez International company". The Guardian. London. Retrieved March 21, 2012.
  11. ↑ Springer, Jon (June 27, 2022). "Kellogg bets on snacking—what the breakup means for brands: The food giant will spin off breakfast cereal and plant-based units". Ad Age . Vol. 93, no. 10. p. 1.
  12. ↑ Jed, Emily (November 19, 2013). "Starbucks To Pay Kraft $2.7 Billion For Early Contract Termination". Vending Machine News. Retrieved July 8, 2018.
  13. ↑ "Kraft to remove artificial dyes from macaroni & cheese". New York Post . Associated Press. October 31, 2013. Retrieved July 8, 2018.
  14. ↑ Bachai, Sabrina (November 1, 2013). "Kraft To Remove Artificial Dyes From Mac And Cheese: Yellow Dye Linked To Hyperactivity In Children". Medical Daily . Retrieved July 8, 2018.
  15. ↑ Harris, Paul (April 2, 2013). "Kraft meets with bloggers protesting chemical additives in mac'n'cheese". The Guardian. Retrieved February 12, 2014.
  16. ↑ Wilson, Jacque. "Kraft removing artificial dyes from some mac and cheese". CNN . Retrieved February 12, 2014.
  17. ↑ "H.J. Heinz Company And Kraft Foods Group Sign Definitive Merger Agreement To Form The Kraft Heinz Company" (Press release). March 25, 2015. Retrieved March 26, 2015.
  18. ↑ "Kraft and Heinz merger to form world's fifth-largest food company led by Warren Buffett". Reuters. March 25, 2015. Retrieved March 25, 2015.
  19. ↑ "The Kraft Heinz Company Announces Successful Completion of the Merger between Kraft Foods Group and H.J. Heinz Holding Corporation" (PDF) (Press release). The Kraft Heinz Company. July 2, 2015. Archived from the original (PDF) on July 14, 2015. Retrieved January 23, 2015.
  20. ↑ "Largest Brands". Kraft Foods Group. 2012. Archived from the original on March 22, 2016. Retrieved October 28, 2012.
  21. ↑ "Processed Prepared Food" . 151. Gorman Publishing Company. 1982: 38. Retrieved June 12, 2018.{{cite journal}}: Cite journal requires |journal= (help)
  22. ↑ Wilbur, T. (2000). Low-Fat Top Secret Recipes. Penguin Publishing Group. p. 105. ISBN   978-1-101-15388-8 . Retrieved June 12, 2018.
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