No more dance parties? Oh, well. For Chuck E. Cheese restaurants, there hasn’t been much to celebrate in 2020 anyway until recently.
Kraft Heinz said Tuesday that it is selling its natural cheese business – including its Cracker Barrel and Breakstone’s brands – to French dairy company Lactalis Group as part of a larger restructuring.
The $3.2 billion sale includes Kraft Heinz production facilities in Tulare, California; Walton, New York; and Wausau, Wisconsin. About 750 employees at those plants will transfer to Lactalis Group.
Kraft Heinz, however, will keep its Philadelphia cream cheese brand, Kraft singles and the Velveeta and Cheez Whiz brands. It’s also retaining its macaroni and cheese business.
Included in the sale are Kraft Heinz’s natural, grated, cultured and specialty cheese businesses in the U.S., its grated cheese business in Canada and its entire international cheese business. Kraft Heinz already sold its natural cheese business in Canada last year for $1.2 billion.
Save better, spend better: Money
By Siddharth Cavale and Richa Naidu
CHICAGO (Reuters) – Kraft Heinz Co
on Tuesday said it would sell its natural cheese business to French dairy company Groupe Lactalis for $3.2 billion, step up its marketing budget and overhaul its supply chain, hoping to save $2 billion by 2024 and halt weak sales and brand deterioration.
The company also forecast better-than-expected sales for the year, sending shares of Kraft Heinz up about 1% in afternoon trading.
Packaged food companies like Kraft Heinz and Campbell Soup
that market canned food and salty snacks have for years faced a perception that their products are unhealthy. At the same time, the industry is battling aggressive competition from cheaper private-label brands from Walmart
At its virtual investor day, Chicago-based Kraft Heinz said it would now manage its business by distributing brands among six platforms built around the occasions people consume Kraft products