Chicago food company Kraft Heinz sells dairy brands to Lactalis for $3.2 billion

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Chicago food company Kraft Heinz sells dairy brands to Lactalis for $3.2 billion

Kraft Heinz Co., the Chicago, Illinois-based American food company co-headquartered in Pittsburgh and Pennsylvania employing over 37,000 workers across the United States as of December 31, 2019, had issued a statement on Tuesday saying that the struggling food company had sold off its natural cheese business including Cracker Barrel alongside Breakstone’s brand to French food industry tycoon Lactalis Group, suggesting a major revamp of the beleaguered food company as the US consumers’ pursuits for fresh and minimally processed foods had surged by many folds over the recent years.

In tandem, while the $3.2 billion sale of Kraft Heinz’s natural cheese business would include its production facilities in Tulare, CA; Walton, NY, and Wausau, Wisconsin, the groups had also added in a joint statement that they were expecting the deal to be closed by the first half of 2021.

Besides, as a part of the deal, around 750 Kraft Heinz employees would join Lactalis Group followed by the completion of the sell-off, however, Kraft Heinz would be able to retain its macaroni and cheese business alongside the Philadelphia cream cheese, Chiz Whiz and Kraft Singles and Velveeta brands, while Kraft Heinz’s natural, cultured, grated and speciality cheese businesses in the United States alongside its entire international cheese businesses would be subject to the $3.2 sell-off.

The Chicago-based processed food manufacturer had also sold off its natural cheese business in Canada last year for an upsum of $1.2 billion.

Cash-strapped Kraft Heinz sells off dairy brands, eyes a thorough revamp

Meanwhile, latest sell-off of its dairy business to Lactalis came forth as the US-based processed food manufacturer had been grappling with a steep shortage in consumers amid an ongoing trend towards fresh and minimally processed foods, while Kraft Heinz had trimmed the value of its Oscar Meyer Kraft brands last year and had taken a $474 million in impairment charges due to a havoc-scale devaluation of its once-cherished brands likes of Maxwell House, Lunchables, Velveeta and Cool Whip.