Kraft Food Group's (KRFT) stocks continue to show improvement after its announcement that it has accepted a merger with H.J. Heinz Co. The buyout by Brazilian corporation 3G Capital Partners sets the groundwork for the world's third-largest food company, Kraft Heinz Co. The $35 billion is expected to have annual revenue of more than $28 billion.
Kraft is best known for its buffet of instant-style macaroni, nuts and cheese products. Many of those products have continued to show strong sales despite the increased success of organic and "healthier" products from niche producers.
It's also weathered some recalls and one investigation by the Commodity Futures Commission concerning wheat futures trading while the company was still part of Mondelez International Inc. Still, analysts say, it is Kraft's "disciplined approach" that has given it steady footing at a time when food companies have been challenged by changing consumer interests.
Image: Mike Mozart
Jan Lee splits her residence between the rural lands of Idaho and Vancouver, British Columbia, Canada. Her articles on business, eco-travel, history and culture have been published in the United States, Canada, Australia and the United Kingdom. Visit her blog at multiculturaljew.polestarpassages.com
KEYWORDS: Finance & Socially Responsible Investment, Business & Trade, Kraft, Heinz, 3G, merger, Justmeans, SRI