Kraft Foods to sell Fruit2O and Veryfine to Sunny Delight Beverages
Co announces that it has agreed to sell its Fruit2O water and Veryfine juice brands and related assets to Sunny Delight Beverages. These brands had net revenues of approximately $135 mln in 2006. In anticipation of the sale, Kraft will record a one-time, pre-tax asset impairment charge of approximately $125 million in Q3. The after-tax impact to net earnings is a charge of approximately $55 million, equivalent to 3 cents diluted earnings per share. Kraft anticipates no material impact to earnings on an ongoing basis.