Income investors got an early holiday gift in October, when Kraft was split into two: A high-growth international snack-food business — Mondelez International (Nasdaq: MDLZ) — and Kraft Foods Group (Nasdaq: KRFT), a North American packaged-food business that’s more focused on paying nice dividends to shareholders.#-ad_banner-# The deal was structured as a tax-free spinoff, with Mondelez shareholders receiving one Kraft share for every three Mondelez shares held. At the time of the spinoff, Kraft was North America’s fourth-largest packaged-food company, with reported revenue… Read More
Income investors got an early holiday gift in October, when Kraft was split into two: A high-growth international snack-food business — Mondelez International (Nasdaq: MDLZ) — and Kraft Foods Group (Nasdaq: KRFT), a North American packaged-food business that’s more focused on paying nice dividends to shareholders.#-ad_banner-# The deal was structured as a tax-free spinoff, with Mondelez shareholders receiving one Kraft share for every three Mondelez shares held. At the time of the spinoff, Kraft was North America’s fourth-largest packaged-food company, with reported revenue of $19 billion in 2011. As two separate entities, Mondelez now owns the Oreo, Cadbury and Nabisco snack food brands, while Kraft hung on to its familiar household U.S. brands — Oscar Mayer, Miracle Whip and Velveeta. The deal was intended to unlock shareholder value, and now the “new” Kraft is a far more enticing income investment than the “old” Kraft. For starters, the $27.4 billion company was launched from a position of strength, with three-quarters of its revenue earned from product categories where Kraft is either the… Read More