Struggling Kraft Heinz sells dairy brands to Lactalis
The Associated Press
Kraft Heinz said Tuesday that it is selling its natural cheese business — including its Cracker Barrel and Breakstone’s brands — to French dairy company Lactalis Group as part of a larger restructuring.
The $3.2 billion sale includes Kraft Heinz production facilities in Tulare, California; Walton, New York; and Wausau, Wisconsin. About 750 employees at those plants will transfer to Lactalis Group.
Kraft Heinz, however, will keep its Philadelphia cream cheese brand, Kraft singles and the Velveeta and Cheez Whiz brands. It’s also retaining its macaroni and cheese business.
Included in the sale are Kraft Heinz’s natural, grated, cultured and specialty cheese businesses in the U.S., its grated cheese business in Canada and its entire international cheese business. Kraft Heinz already sold its natural cheese business in Canada last year for $1.2 billion.
The sale is expected to close in the first half of next year, the companies said.