Kraft to sell Fruit20 and Veryfine brands to Sunny Delight
NORTHFIELD, Ill. Kraft Foods Inc. announced Wednesday that it will sell Veryfine juice and Fruit2O brands to Sunny Delight Beverages Co., a leader of juice drinks in North America. In addition to the brands, the transaction includes specific manufacturing equipment, a manufacturing facility in Littleton, Mass and about 200 employees who will join Sunny Delight. In 2006, Fruit2O and Veryfine had net revenues of about $135 million.
“For Kraft, we believe we will create greater long-term shareholder value by selling, rather than investing in, these brands [Fruit2O and Veryfine],” said Rick Searer, Kraft Executive Vice President and President of Kraft North America.
Kraft will record a one-time, pre-tax asset impairment charge of $125 million in the third quarter in anticipation of the sale. The sale is expected to conclude in the fourth quarter.
Kraft’s LiveActive Movement offers new solutions for digestive wellness
GLENVIEW, Ill. Kraft Foods has developed a way for its consumers to stay fit by keeping a watch on their digestive health.
The LiveActive Movement, aimed to assist Americans in maintaining their digestive (and overall) health through a customized plan of diet and exercise, shows how daily activities can impact digestive heath.
The program, developed by Kraft Foods and Leslie Bonci of the University of Pittsburgh Medical Center, uses the Internet to assess an individual’s digestive health, which is then taken further with the LiveActive Everyday Plan, exercise and food suggestions to promote what Kraft calls “gut health”.
“It’s really a comprehensive program that looks at key aspects of digestive health—from food choices and hydration to exercise and relaxation. Many people may not realize it, but being good to the gut isn’t just important for digestive health, it’s also important for overall health and wellness,” said Leslie Bonci of the University of Pittsburgh Medical Center.
The plan also integrates a new line of LiveActive products to help keep digestive tract on track, which contain live and active cultures that are good for the body.
“At Kraft, we’re committed to finding innovative ways to helping people feel their best every day,” said Kirsten Lynch, vice president of marketing for Kraft Foods. “The LiveActive Movement does just that by bringing digestive health benefits through our great-tasting LiveActive products, as well as simple tips for maintaining digestive health.”
For more information about the LiveActive Movement, LiveActive products and tips on digestive health, visit LiveActiveFoods.com.
Steve Sanger steps down as General Mills’ chief executive officer
MINNEAPOLIS Steve Sanger stepped down as chief executive officer of General Mills Monday and will be succeeded by Kendall Powell, the company’s president and chief operations officer. Sanger, who served as General Mills chairman and chief executive officer for more than 12 years, will continue as chairman to the end of the current fiscal year in May 2008.
“The board and I have great confidence that Ken [Powell] will be an outstanding chief executive officer of General Mills,” said Sanger. “Ken’s commitment to our culture and the development of our people make him uniquely qualified to lead General Mills in the next phase of our long-term growth.”
Sanger’s record will be a tough act to follow for Powell, who noted that since Sanger became chief executive officer in 1995, company sales have more than doubled to exceed $12 billion in fiscal 2007 and return to shareholders averaged 10 percent compounded annually over the period. Powell, himself, has held a number of management assignments over his 28-year career with General Mills, most recently as president and COO of the company in June 2006.
“It has been a great privilege for me to serve as Chief Executive Officer of General Mills,” Sanger said, “and I look forward to seeing General Mills continue to grow and prosper in the years ahead.”