Kraft Heinz Sells B2B Powdered Cheese Business to Kerry Group

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The Kraft Heinz($NASDAQ:KHC) Company has agreed to sell its B2B powdered cheese business to global food, beverage and pharma manufacturer Kerry Group. The proposed transaction is expected to close in the second half of 2022. This move will allow Kraft Heinz to focus on its core businesses and continue to drive growth. It is also expected to have a positive impact on Kraft Heinz’s earnings in the long term. Kerry Group is a well-established company with a strong track record, so we expect this transition to be seamless.

Share Price

Kraft Heinz stock opened at $38.0 and closed at $37.4 on the news. Kraft Heinz is one of the largest food and beverage companies in the world, with a portfolio of iconic brands including Kraft, Heinz, Oscar Mayer, and Planters. The sale of the B2B powdered cheese business is part of the company’s ongoing efforts to streamline its operations and focus on its core businesses.

VI Analysis

KRAFT HEINZ is a high risk investment in terms of financial and business aspects according to VI Risk Rating. The company’s fundamentals reflect its long term potential. However, there are potential risks in the business and financial areas that investors should be aware of. Some of the potential risks include the company’s high debt levels, which could hamper its ability to grow in the future. Additionally, the company is highly dependent on the US market, which could be a risk if there are economic downturns in that country.

Summary

The sale includes the Kraft, Polly-O and Breakstone’s brands, as well as the manufacturing facilities in New Jersey and Wisconsin. Kraft Heinz said that the sale will allow the company to focus on its core consumer businesses. Kraft Heinz is a food and beverage company that produces and markets branded food and beverage products, including condiments, cheese and dairy, snacks, and packaged meals.