Kraft sells Brazilian dairy

BRAZIL/ITALY – Kraft Foods is to sell its dairy business in Brazil to Italian company Parmalat for an undisclosed sum.

The sale, which should be finalised by the end of November, includes the Gloria (powder and condensed milk) and Avare (flavoured milk) brands and manufacturing facilities in Cerqueira Cesar, Itaperuna and Jaragua do Sul.

The dairy employes 600 people and reached sales of US$63 million (69m euro) in 2000.

Group vice president Joachim Krawczyk said that despite the sale, the company remained committed to the country. “The sale of the Gloria business will enable us to focus on the growth of our core categories in this critical market,” he said.

A Kraft spokeswoman elaborated on the company strategy, however, and said: “Dairy products are not a core category for us. Brazil continues to be our largest business in Latin America with leadership position in chocolate, soft drinks and the fast growing biscuit category. Kraft Foods remains highly committed to the growth of the business in Brazil.”

Kraft is the largest branded food and beverage company in North America and the second largest worldwide.