Kraft Snack Division’s New Business Model = Cadbury + Nabisco

Kraft Snack Division’s New Business Model = Cadbury + Nabisco


Information as to which products Kraft will place in the snack company and which will land in the grocery company are a bit sketchy.  However, it seems that anything junk-foodish falls into the Snack side.  After reviewing the products that would fall into this new company, it struck me that most of  the powerhouse brands were inherited from Nabisco.

Here is a list of the brands Kraft inherited from Nabisco.  All of these brands will fall in the Snack business.

Arrowroot • Barnum’s Animals • Better Cheddars • Cheese Nips • Cameo •Chips Ahoy! • Claussen • Club Social • Corn Nuts • Fig Newton • Filipinos • Fudgee-O • Ginger Snaps • Handi-Snacks • Honey Maid • In a Biskit • Jell-O • Lefèvre-Utile (LU) • Lorna Doone • Mallomars • Nilla • Nutter Butter • Oreo • Peek Freans • Planters • Premium Crackers • Ritz Crackers • SnackWells • Sociables • Social Tea • Teddy Grahams • Triscuit • Vegetable Thins • Wheatsworth • Wheat Thins

Is this a new business model?

Here are the brands Kraft inherited from Cadbury.  All of these brands too will fall into the Snack business.

Bassett’s • Boost •Bournville • Bournvita • Brunch Bar • Buttons • Caramilk • Cherry Ripe • Chomp • Clusters • Creme Egg • Creme Egg Twisted • Crunchie • Curly Wurly • Dairy Milk (Caramel) • Double Decker • Dream  (chocolate) • Fingers • Flake • Freddo • Fry’s • Fudge • Green & Black’s • Heroes • Kent • Kréma • Koko • La Pie qui Chante • Maynards • Milk Tray • Mini Eggs • Moro • Mr. Big • Old Gold • Pascall • Picnic • Poulain • Roses • Shots • Snack • Star Bar • The Natural  Confectionery Company • Time Out • Trebor • Turkish Delight • Twirl • Vichy Pastilles • Wispa • Bubbaloo • Bubblicious • Certs • Chiclets • Clorets • Dentyne • Halls • Hollywood • Malabar • Stimorol • Stride • Sour Patch Kids • Swedish  Fish • Trident

After reviewing the extensive list of current Kraft brands.  Here are the powerful brands which Kraft is adding to the Snack company:

• Air Crisps • Capri Sun (juice drink) • Country Time (powdered drink mix) • Crystal Light • Harvest Crisps • Kool-Aid (flavored drink mix)

Yes, four powdered drinks and a couple B-level crackers.  Investment bankers, lawyers, and the like made billions of dollars merging these three companies and now they will make billions more breaking them apart.  Is this really the best way to bring value to Kraft shareholders?  Is Kraft’s business model so stale that the only growth mechanism is a M&A version of Three-Card Monte?

Is this split good for Kraft or just a shell game?

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