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View Full Version : should coke buy kraft?



popologist
09-11-2006, 10:22 AM
there are rumors that kraft may be sold-off from its current owner (i don't remember its name).

what do you think about coke snatching up kraft? this might give it more leverage against the ever-expanding pepsico.

hmm. would the new company be CoCaCo? ;)

NRGSLLR@
09-11-2006, 11:12 AM
Current company I believe is Altria. Coke needs stronger Beverage Brands, they should look seriously at Glaceau or Nestle Waters. Big Bucks but they are the market leaders in their respective beverage segments. Perhaps they should Buy Miller from SAB and really throw PCNA for a loop.

popologist
09-11-2006, 06:18 PM
i'm not sure coke wants to take the risk of being a two "sin" company... (sweets & alcohol)

[ 09-11-2006, 05:21 PM: Message edited by: popologist ]

popologist
09-11-2006, 06:21 PM
kraft owns these big beverage brands: maxwell house, kool-aid, capri sun and gevalia.

fusion
09-11-2006, 06:57 PM
Altria owns Kraft. They also own Phillip Morris (cigarettes). They also merged Nabisco with Kraft a few years ago, so Kraft is now quite a big company.

Coke already owns the Danone waters in the US, so I don't see them buying Nestle Waters.

They should have bought a salty snacks company years ago. There are no real nationwide companies other than Frito Lay, but Synders of Hanover is in a lot of places, but they are mostly a pretzel company. Around here they also distribute Wise Chips.

Herr's is distributed regionally in this area, but also is available in many Walmart locations outside their area.

The tea company that owns Tetley is investing heavily in Glaceau. I look for them to completely buy them out, eventually.

reset man
09-11-2006, 09:30 PM
Kraft also owns Very Fine, Fuit2o and Tazo Tea.

SamC
09-11-2006, 10:53 PM
Kraft is a huge company. Any deal would be much more better termed a "merger" than KO buying KFT.

About 60% of the stock in KFT is owned by the Altria Group (PM). This is the company that used to be known as Philip Morris. It consisted of Kraft (into which Nabisco and General Foods were merged), Miller, and the tobacco company. It spun off KFT and Miller into seperate companies, but still owns 60% of KFT stock and about 50% of the merged SABMiller brewery stock. (BTW, PM also used to own 7UP as well).

Once tobacco litigation is resolved in a responsible way (such that some slick lawyer cannot sue the spun off Kraft or SABMiller for stuff that PM did back in the day), the plan is to sell the remainder of KFT stock and of SABMiller stock and leave PM as a pure tobacco company.

It would be a good fit. KFT owns dozens of great worldwide consumer brands like Maxwell House, Kool Ade, Country Time, Oscar Meyer, Tombstone, Kraft, Jell-O, Post, Nabisco (including OREO and Fig Newton), and Tolberone.

Almost no overlap (only Country Time, which is premanently liscensed to C-S for bottled versions) comes to mind.

As to salty snacks, if BUD could not beat PEP in that business (it lost its a** with Eagle Chips), nobody can.

popologist
09-15-2006, 07:33 PM
well, kraft may not be a "salty snack" company, but they're wide range of household name products would give coke more shelf space in supermarkets, and, thus, more leverage against pepsi.

coke could run promotions with its soda and crackers and cookies, etc. supermarkets like that kind of promotion, right?

RunWithDaLilGuy
09-19-2006, 09:39 PM
correct popologist. and that would give coke great leverage for cross promoting items.

coke needs to find out their strategic place in the new and emerging food/bev market.

as for miller, i believe PM owns a third and SABMiller would never let it go. breweries are trying to get bigger, not smaller.

Miller USA represents a good outlet for some of SAB's Euro brands.