Kraft Heinz, in the wake of a nosedive in its financial performance, is shopping its Breakstone’s line and other brands and units, CNBC reports.
The Breakstone brand, which comprises sour cream and cottage cheese, is reportedly being looked at as part of a larger strategic divestiture. This includes other cheese businesses and Maxwell House coffee, according to CNBC. The last such sale by Kraft Heinz was of its Canadian natural cheese business last year.
Kraft Heinz is in retrenchment mode, having announced a big write-down, reduced dividends and missed earnings projections. The company needs cash, and a sale of Breakstone’s could bring $400 million, sources told CBNC.
Part of the problem with Breakstone’s is that, while it’s a leading brand in the category, cottage cheese consumption has steadily declined since the 1970s, when it was a popular diet food. More generally, dairy as a category has been declining as consumers turn away from it for health reasons.