Meat doesn't mesh with Kraft's long-term goals

03/09/2005

Kraft Foods CEO Roger Deromedi left meat off the list of businesses the Northfield, Ill.-based company will focus on as it tries to drive growth, reports Crain’s Chicago Business. Deromedi told investors that Kraft would concentrate on cheese and dairy, crackers and cookies, coffee and specialty beverages.

"It seemed apparent that they were dressing Oscar Mayer up for a sale," says Tim Ewing, senior vice-president and co-manager of the large-cap value portfolio at Mesirow Financial Inc., which holds 200,000 Kraft shares. "We've thought for some time that they'll spin off Oscar Mayer."

Morningstar Inc. analyst Mark Hugh Sam says, "I believe Sara Lee would be the most logical buyer of Oscar Mayer. The only others that could afford it would be ConAgra, Tyson or Smithfield."