Kraft Heinz is reportedly weighing options - which might include a sale - for its Breakstone’s brand.
Citing sources familiar with the matter, CNBC reports that the packaged food company has hired Royal Bank of Canada for advice. Breakstone’s houses cottage cheese, butter and sour cream.
According to the aforementioned report , Breakstone’s valuation could come in around $400 million. The unit generated 400 million in revenue and $50 million in earnings before interest, taxes, depreciation and amortization.
The news follows last year's announcement from Kraft Heinz, of the sale of its Canadian natural cheese business to Italian dairy group Parmalat for $1.23 billion. The deal was followed by a $4.1 billion impairment charge on the Kraft brand in February.
Dairy demand in the U.S. has apparently taken a hit due to a consumer preference tilt towards non-dairy alternatives like oat, soy and almond milk. From being a rage in the 1970s, cottage cheese has reportedly flattened out in popularity in recent years.
CNBC also reported recently that Kraft Heinz was possibly considering a sale of its Maxwell House coffee segment, citing people familiar with the matter.