Kraft to sell Fruit20 and Veryfine brands to Sunny Delight
NORTHFIELD, Ill. Kraft Foods Inc. announced Wednesday that it will sell Veryfine juice and Fruit2O brands to Sunny Delight Beverages Co., a leader of juice drinks in North America. In addition to the brands, the transaction includes specific manufacturing equipment, a manufacturing facility in Littleton, Mass and about 200 employees who will join Sunny Delight. In 2006, Fruit2O and Veryfine had net revenues of about $135 million.
“For Kraft, we believe we will create greater long-term shareholder value by selling, rather than investing in, these brands [Fruit2O and Veryfine],” said Rick Searer, Kraft Executive Vice President and President of Kraft North America.
Kraft will record a one-time, pre-tax asset impairment charge of $125 million in the third quarter in anticipation of the sale. The sale is expected to conclude in the fourth quarter.