Kraft/Danone: Crunch time

Some consumer groups naturally create value. Others have value creation thrust upon them. Take Danone and Kraft. The French dairy group’s shares have almost doubled in the last three years, as it has disposed of weaker brands and grown its margins. Kraft’s shares, meanwhile, have risen just 5% on an annualised basis since 2001. With activist shareholder Nelson Peltz now on its books, Kraft is reportedly talking to Danone about buying its biscuits and cereals unit in a bid for growth. It’s clear ...