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;12 years ago (2012-10-01)
Founder James L. Kraft
DefunctJuly 2, 2015;9 years ago (2015-07-02) (as a company)
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. 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]

See also

Related Research Articles

<span class="mw-page-title-main">Heinz</span> American food processing company known for its ketchup and condiments

The Kraft Heinz Foods Company, formerly the H. J. Heinz Company and commonly known as Heinz, is an American food processing company headquartered at One PPG Place in Pittsburgh, Pennsylvania. The company was founded by Henry J. Heinz in 1869. Heinz manufactures food products in plants on six continents, and markets these products in more than 200 countries and territories. The company claims to have 150 number-one or number-two brands worldwide. Heinz ranked first in ketchup in the US with a market share in excess of 50%; the Ore-Ida label held 46% of the frozen potato sector in 2003.

<span class="mw-page-title-main">Vegemite</span> Australian brand of spread made from yeast

Vegemite is a thick, dark brown Australian food spread made from leftover brewers' yeast extract with various vegetable and spice additives. It was developed by Cyril Callister in Melbourne, Victoria, in 1922, and it was first sold in stores on 25 October 1923.

<span class="mw-page-title-main">Nabisco</span> American snack company

Nabisco is an American manufacturer of cookies and snacks headquartered in East Hanover, New Jersey. The company is a subsidiary of Illinois-based Mondelēz International.

<span class="mw-page-title-main">Kraft Dinner</span> Boxed macaroni and cheese mix

Kraft Dinner in Canada, Kraft Mac & Cheese in the United States, Australia and New Zealand, Mac and Cheese in the United Kingdom and internationally, is a nonperishable, packaged macaroni and cheese mix. It is made by Kraft Foods Group and traditionally cardboard-boxed with dried macaroni pasta and a packet of processed cheese powder. It was introduced under the Kraft Dinner name simultaneously in both Canada and the U.S. in 1937. The brand is particularly popular with Canadians, who consume 55% more boxes per capita than Americans.

<span class="mw-page-title-main">Planters</span> Snack food brand specializing in peanuts

Planters Nut & Chocolate Company is an American snack food company now owned by Hormel Foods. Planters is best known for its processed nuts and for the Mr. Peanut icon that symbolizes them. Mr. Peanut was created by grade schooler Antonio Gentile for a 1916 contest to design the company's brand icon. The design was modified by a commercial artist and has continued to change over the years.

Lunchables is an American brand of food and snacks manufactured by Kraft Heinz in Chicago, Illinois, and marketed under the Oscar Mayer brand. They were initially introduced in Seattle in 1988 before being released nationally in 1989. Many Lunchables products are produced in a Garland, Texas, facility, and are then distributed across the United States.

<span class="mw-page-title-main">Milka</span> Confectionery brand primarily sold in Europe

Milka is a Swiss brand of chocolate confectionery. Originally made in Switzerland in 1901 by Suchard, it has been produced in Lörrach, Germany, from 1901. Since 2012 it has been owned by US-based company Mondelez International, when it started following the steps of its predecessor Kraft Foods Inc., which had taken over the brand in 1990. It is sold in bars and a number of novelty shapes for Easter and Christmas. Products with the Milka brand also include chocolate-covered cookies and biscuits.

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Pinnacle Foods, Inc., is a packaged foods company headquartered in Parsippany, New Jersey, that specializes in shelf-stable and frozen foods. The company became a subsidiary of Conagra Brands on October 26, 2018.

<span class="mw-page-title-main">Kraft Foods Inc.</span> Defunct American food and beverage company

Kraft Foods Inc. was a multinational confectionery, food and beverage conglomerate. It marketed many brands in more than 170 countries. Twelve of its brands annually earned more than $1 billion worldwide: Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oreo, Oscar Mayer, Philadelphia, Trident, and Tang. Forty of its brands were at least a century old.

<span class="mw-page-title-main">Irene Rosenfeld</span> American businesswoman (born 1953)

Irene Blecker Rosenfeld is an American businesswoman who was the chairman and chief executive officer (CEO) of Mondelēz International. Rosenfeld's career began at Dancer Fitzgerald Sample, a New York City advertising agency. She later joined General Foods consumer research, and then led Frito-Lay as CEO and chairwoman.

<span class="mw-page-title-main">Velveeta Shells & Cheese</span> Brand name stovetop pasta shells and cheese product

Velveeta Shells & Cheese is a shell pasta and cheese sauce food product that debuted in the United States in 1984, as part of the Velveeta brand products. Its ingredients, texture, and flavor are very similar to macaroni and cheese. The product is a shelf-stable food.

Mondelez International, Inc., styled as Mondelēz International, is an American multinational confectionery, food, holding, beverage and snack food company based in Chicago. Mondelez has an annual revenue of about $26.5 billion and operates in approximately 160 countries. It ranked No. 108 in the 2021 Fortune 500 list of the largest United States corporations by total revenue.

<span class="mw-page-title-main">Belvita</span> American breakfast biscuit brand

Belvita, sometimes stylized as belVita or BelVita, is a brand of breakfast biscuit introduced originally in France in 1998 as LU Petit Déjeuner by Kraft Foods Inc. and currently owned by Mondelēz International.

John T. Cahill is an American businessman.

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<span class="mw-page-title-main">Kraft Heinz</span> American multinational food company

The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American multinational food company formed by the merger of Kraft Foods and H.J. Heinz Company co-headquartered in Chicago and Pittsburgh. Kraft Heinz is the third-largest food and beverage company in North America and the fifth-largest in the world with over $26.0 billion in annual sales as of 2021.

<span class="mw-page-title-main">Bega Group</span> Australian cheese manufacturer

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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, Volume 151" . Processed Prepared Food. 151. Gorman Publishing Company: 38. 1982. Retrieved June 12, 2018.
  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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