Kraft And General Foods Become One

FOR SIX YEARS, PHILIP MORRIS considered combining Kraft and General Foods, its two big acquisitions of the 1980s--but never took the plunge. Now, finally, it has decided to act, merging the units under the name Kraft Foods. The move gives Kraft a single sales force of 3,500, as well as centralized control over manufacturing. It also eliminates a layer of bureaucracy, cutting 100 jobs. Although a Kraft spokesman denies it, company sources say more heads will have to roll if General Foods' operations move to Kraft's base in Northfield, Ill. The consolidation is Kraft executive James Kilts' first big step since taking over worldwide food operations in December.

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