Last August trusty Kraft announced it was splitting into two separate companies: North America groceries and global snacks. No one is worried about the latter. Emerging nations have faster GDP growth than the biggest economy in North America - the U.S. Also, in some of those emerging countries snacking is a dominant pattern. Eat on the run.
Grocery causes concern. As I explain in this analysis for the financial information company Motley Fool, many of Kraft customers such as A&P and Safeway are struggling. The supermarket business is under attack by the big boxes, and more recently, the dollar stores. Another factor is the stiff competition for Kraft brands from private labels. The time when we wouldn't serve private label edibles to guests (Mum only served Sara Lee) has long passed. So, why should I pay more than a buck more for a Kraft item in Wal-Mart's when I have the choice of private label Sam's Club and Great Value?