Kraft Foods announced today it will sell its confectionary business to Wm. Wrigley Jr. Co. for roughly $1.5 billion.
The expected sale, part of Kraft's ongoing "Sustainable Growth Plan" intended to build much-needed top-line growth, includes Life Savers, Creme Savers, Altoids, Trolli and Sugus brands, which make up 1.5% of Kraft's global revenues.
Retailers and analysts have cited Kraft's need to focus on building its bigger grocery categories, including cheese.
Kraft spent $23.1 million on measured media in 2003 against Life Savers and Creme Savers, handled by Interpublic Group of Cos.' Foote, Cone & Belding, New York, and $11.9 million against Altoids, handled by Publicis Groupe's Leo Burnett, Chicago, according to TNS Media Intelligence/CMR.
Wrigley's agency of record is Omnicom Group's BBDO Worldwide, Chicago.
The deal is expected to close by mid-2005.
Source – AdAge.com