Kraft to sell off Nordic and Baltic salty snack brands

The signing of the deal to sell the Estrella, Maarud and Taffel Chips brands to Fepco 1 AS, a Norwegian subsidy of Herkules Private Equity Fund, comes in the same week as the multinational completed the sale of its Post cereals business to Ralcorp Holding

In the Nordic and Baltic countries,
Kraft has decided to concentrate on brands in its core categories of
coffee, chocolate, biscuits, cheese and dairy; brands favoured by the
strategy include Gevalia and Jacobs coffee, Marabou and Freia
chocolate, and Philadelphia cream cheese. The Post-Ralcorp deal, for
$2.6bn of stock and cash, was also part of the company's strategy to
concentrate on core divisions. Details of the salty snacks sale have
not been disclosed, and the deal is subject to regulatory approvals.
If the go-ahead is granted, closure is expected before the end of
2008.

The Estrella and Maarud brands are
present in Sweden, Norway, Finland, Denmark, Lithuania, Latvia and
Estonia. Taffel Chips are present only in Denmark.

The sale will also include assets and
operations in Norway, Sweden and Lithuania; 350 employees will
transfer to the new owner.

In full year 2007 Kraft saw an increase
in net revenues to US$34,356m, up from $34,356m the previous year.
Operating income took a hit, however, falling from $4521m to $4331m.

The firm has had a restructuring
programme in place since 2004, which is expected to be completed by
the end of 2008. By that time it expects to have realised $1 bn out
of an anticipated $1.2 bn in cumulative annualised savings. The
programme will have cost it some $2.8bn.