The long-announced split became official on October 2, but shareholders got a big surprise: it is Mondelez, not the new North American grocery company Kraft Foods Group (KRFT) which has inherited the former Kraft Foods Inc. enormous debt! All the debt has gone to Mondelez, where workers will be consigned to paying the interest charges in an organization driven by aggressive cost-cutting.
The new Kraft Foods Group, on the other hand, has announced a target dividend 50% greater than what the old, pre-split Kraft Foods Inc. was paying – at a time when Kraft’s grocery business has seen declining margins and gross profits.
The split has created two cash cows for investors, and multiple challenges for workers.
Read the full story in the latest Kraft/Mondelez Union Network – download and distribute here!