Kraft Foods plans to split into 2 companies

August 4, 2011 - 6:30 AM

NORTHFIELD, Ill. (AP) — Kraft Foods Inc. plans to split into two publicly traded companies, with one concentrating on snacks while the other focuses on the North American grocery business.

The move comes at a time when more and more companies, including Wal-Mart Stores Inc., Target Corp. and dollar stores, are increasing their grocery sections to capitalize on consumers' one-stop shopping needs.

The snacks company, which would house brands such as Oreo and Trident, would include the current Kraft Foods Europe and developing markets units and the North American snacks and confectionery businesses.

The grocery business would contain the current U.S. beverages, cheese, convenient meals and grocery segments and non-snack categories in Canada and food service.  

Kraft said Thursday that it plans for the split to be complete by the end of next year.