Nestle buys Kraft pizzas, says no interest in Cadbury (Kraft, on the other hand)

[depakid]

Source: AFP

Food giant Nestle took a big step up in the frozen pizza sector on Tuesday, saying it had bought Kraft Foods' pizza units in the United States and Canada for 3.7 billion dollars (2.5 billion euros). Kraft said it would use the entire proceeds to improve its bid for Cadbury while Nestle said it was not interested in buying up the British confectioner.

The statement by Nestle was seen as quashing rumours that the group, which said a day ago that it would bank 40 billion dollars for selling its stakes in eyecare giant Alcon to Novartis, would use its treasure chest to bid for Cadbury. Bank Vontobel analyst Claudia Lenz pointed out that having renounced a bid on Cadbury, Nestle would have "enough firepower to do further acquisitions."

Buying Kraft's frozen pizza business would boost meanwhile boost the group's frozen food business in North America, said Lenz, making a point also raised by Nestle chief Paul Bulcke. "This frozen pizza business greatly enhances Nestle's frozen food activities in North America, bringing together a selection of great US and Canadian brands, industry-leading R&D and excellent route-to-market capabilities, which complement our existing ice cream direct-store-delivery," said Bulcke.

Brands owned by Kraft include DiGiorno, Tombstone and California Pizza Kitchen.

Read more: http://www.alternet.org/rss/breaking_news/101718/nestle_buys_kraft_pizzas%2C_says_no_interest_in_cadbury/

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Anyone who might have thought that those (and many other things on supermarket shelves) were actually competing products- well, think again.

[hobbit709]

1. Since I don't eat frozen pizza, no big deal

I try to avoid any frozen stuff myself unless I personally froze it.

[MaineDem]

2. Nestle owns more than one can imagine

I really don't like that company. We have them here in Maine as owners of Poland Spring water. They take water from towns with no reimbursement. Okay, it's legal but still.

I was so disappointed to learn they own San Pellegrino sparkling water, too. Damn.

[Rosa Luxemburg]

3. as long as cadbury makes chocolate cream easter eggs I will happy

[ingac70]

14. You can get those year 'round in UK.

My favorite!

[jmowreader]

4. There is very little competition in the frozen foods aisle

One company that owns a HUGE chunk of that aisle is Schwan's Global Supply Chain, who owns Tony's (low-end), Red Baron (midrange) and Freschetta (high-end) pizzas, Mrs. Smith's and Edwards pies, Asian Sensations, Larry's Potatoes...and they'd probably buy more brands if they could.

I don't know who taught American business "grow or die," but I'd like to kick his ass. There is a "right size" for every business, which is why layoffs are sometimes called "rightsizing"--we fucked up, we bought too many businesses and hired too many people, and now it's time to fix it.

[IthinkThereforeIAM]

6. Schwans is always higher quality than the other shlop...

...Schwans, of Marshall, Minnesota has always been among the highest quality products offered in head to head product comparisons. That may have a lot to do with so much of Schwan's products being in the freezers. You used to only be able to buy Schwan's products from the door to door, farm to farm salesman in his LP gas powered delivery truck. Schwan's has used LP gas for their trucks for decades, an innovator. I also personally know that Schwan's takes good care of their employees and communities their processing plants are located in.

[jmowreader]

13. I like Schwans products.

When I go grocery shopping and need frozen foods, I tend to flip the package over. If I see the item was made by Schwan's, I recognize it as a high-quality offering.

Something I don't think a lot of people realize is supermarkets make part of their profits by renting shelf space to various companies. There are different rates--the shelf closest to the floor is cheapest, the ones from elbow to shoulder level are most expensive. It's rented by the foot. When this started, so also did all the consolidation in the food industry. Take Ranch Style Beans. These are great beans. The company who made them sells one product: beans. They've got several flavors, but they're still a one-product company and those aren't the kind of companies that can afford to rent shelf space. So they sold to ConAgra, who as a giant conglomerate can afford to rent five or six feet for Ranch Style Beans as part of a huge combined buy. This is a practice we can't even blame on Walmart because they were renting shelf space in supermarkets before Walmart decided there was money in the food business.

[IthinkThereforeIAM]

5. Kraft ruined Tombstone pizzas...

... when Kraft bought out Tombstone pizza, a local homegrown company from Wisconsin, they changed the recipes, turned them into bland tasting crap that I literally cannot stomach. Tombstones used to be famous for their spicy sauce and crisp crusts, not anymore. I seldom buy frozen pizzas anymore, but if I do, I buy Bernatello's or Roma (same company) pizzas, a small family business from a small town in Minnesota.

[saigon68]

9. Tombstone WAS the BEST

Not any more tho

Tombstone was founded in Medford, Wisconsin, USA, by Joe "Pep" and Ron Simek in the 1970s.

The name came from The Tombstone Tap, a tavern they owned across from a cemetery.

[NashVegas]

12. Check Out Home Run Inn

If it's in your stores. About the freshest I've ever tasted, as frozens go.

[saigon68]

16. Its good too.

Its from Chicago-- Home of DA Bears.-- sorry Coach Lovey

[MindPilot]

7. Cadbury's is the best chocolate on the planet

please don't mess it up.

[Romulox]

11. Honestly, no. It's not. Try a Ritter Sport bar, for example.

A LOT better than the Cadbury stuff (and YES, I've had it in Britain!)

[Quantess]

15. Ick. You think so?

I rate them just a notch above Russell Stover. Oh well, there's no accounting for taste.

[era veteran]

8. But what did poison maker Phillip Morris (Altria) do to Kraft when it owned it?

[Romulox]

10. Nestle = low quality (had a Crunch bar lately?).

Good thing the only pizza I eat is home made.