While most people wouldn't connect Oscar Mayer with Kraft Foods, the two will soon be separate entities. Kraft officials plan reorganize and make the Oscar Mayer brand a separate business unit. The strategy actually goes deeper than that as Kraft plans to split its five North American business units into eight.
The changes are set for early 2008. Under the new structure, Kraft's existing five sectors (beverages, cheese, grocery, snacks and cereals and convenience meals) will be sorted into eight groups (beverages, cheese, grocery, snacks and cereals, foodservice, pizza, Oscar Mayer and Canadian operations).
The point behind the move, according to Kraft officials is to "make these units more accountable and closer to their consumers." Under this organization, they believe the brands will be more flexible and better able to change direction as needed in a more timely manner.
Of course, this move increases the speculation that Kraft wants to sell Oscar Mayer.
"We've been investing in the brand over the past 18 months. We've been investing in new product development. We can't speculate on the future, but Oscar Mayer is a core business for us and a business that is really important to us," said a Kraft spokesperson.