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.