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Manufacturing News

Nestlé to acquire Kraft Foods' frozen pizza business

January 13, 2010

Nestlé plans to acquire Kraft Foods' frozen pizza business in the US and Canada for $3.7 billion. Including the DiGiorno, Tombstone, California Pizza Kitchen, Jack’s and Delissio brands, the pizza business provides a new strategic pillar to Nestlé’s frozen food portfolio in the US and Canada. The cash transaction is subject to US and Canadian regulatory approval and is expected to be completed this year.

The acquisition brings leadership in the frozen pizza category, where Nestlé previously had a minor presence. “This frozen pizza business greatly enhances Nestlé'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 Paul Bulcke, Nestlé CEO.
 
With estimated sales of $2.1 billion in 2009, Kraft Foods was the leader in the frozen pizza category and enjoyed double-digit growth in the US and Canada over the last four years. The business will become part of Nestlé USA, adding to Nestlé’s strong presence in prepared dishes and hand-held product categories under the Stouffer's, Lean Cuisine, Buitoni, Hot Pockets and Lean Pockets brands.

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