Nabisco-Kraft integration leads to job losses

U.S. food company Kraft Foods Inc. on Friday agreed to sell its Brazilian dairy business to Italian food maker Parmalat Finanziaria. The move is part of a Latin American restructuring that includes three plant closures and the elimination of about 500 jobs. The dairy sale, expected to close by the end of November, includes the Gloria and Avare brands and manufacturing facilities in Cerqueira Cesar, Itaperuna, and Jaragua do Sul, all located in Brazil. The dairy business had sales of US$63 million ( 69.3 million euros) in 2000 and has over 600 employees. Terms of the agreement were not disclosed. Separately, Kraft said it would sell its Pilar pasta and biscuit business in Brazil to two privately held Brazilian companies. The sale, expected to close in the next several weeks, includes a plant located in Recife, Brazil. The Pilar business had sales of US $17 million (18.7 million euros) in 2000. Terms of the agreement were not disclosed. ``We remain totally committed to the growth of our business in Brazil,''​ said Joachim Krawczyk, group vice President, Kraft Foods International and president of Kraft's Latin America business. ``The sale of the Gloria and Pilar businesses will enable us to focus on the growth of our core categories in this critical market.''​ Kraft said it would close three manufacturing plants in Latin America as part of its ongoing integration of Kraft Foods and Nabisco operations. The plants to be closed include a biscuit and dry mix plant in Montevideo, Uruguay; a biscuit facility in Lasso, Ecuador; and a dry mix plant in Maipu, Chile. Approximately 500 positions will be affected by these closures.