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Justin Fox

Pack Up the Peanuts: Party's Over for Kraft

Kraft Foods is about to undergo a wrenching change as new owners get ready to cut costs
Head to the health-food aisle.

Head to the health-food aisle.

Photographer: Daniel Acker/Bloomberg
Corrected

It is nothing new for Kraft Foods Group to undergo an ownership change. Since 1980, the company -- which got its start in 1903 when James Lewis Kraft rented a horse and wagon to bring cheese from wholesalers to small stores in Chicago -- has been going through about one merger, spinoff or initial public offering every three years.

I will wager, though, that this particular ownership change, with Kraft Foods merging with H.J. Heinz in a deal arranged by Jorge Paulo Lemann’s 3G Capital and Warren Buffett’s Berkshire Hathaway, will be more dramatic and traumatic (for Kraft Foods employees, not necessarily customers or shareholders) than all the rest combined.