Kraft
Foods Inc. reportedly is looking to sell its Post cereal business, and PepsiCo
Inc. is reportedly interested,
according
to The Wall Street Journal. Kraft has reportedly sent out financial
information and expects to receive about $3 billion from the disposal of the
maker of Grape Nuts and Shredded Wheat. PepsiCo, which makes not only Mountain
Dew and Pepsi soda, but also Quaker cereals and Tropicana juices, is looking
to add more nutritious brands to its stable, which also includes Gatorade and
Frito Lay chips. After all, PepsiCo can no longer rely upon high school and
college students — the target market for Mountain Dew and Doritos — for
earnings growth, especially in light of school crackdowns on junk food.
Consequently, a PepsiCo purchase of Post could introduce Post's fiber-laden
cereals to a new generation by adding flavors like Mountain Dew Frost Shredded
Wheat. —Matthew Wurtzel
See
story from The Wall Street Journal (subscription may be required)
See
post from BloggingStocks
See
Kraft Dealwatch
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