KRAFT SELLS MARGARINE BUSINESS
By Adnews Staff
U.S.-based Nabisco Inc. has bought the North American margarine business of Kraft Foods, which consists of the Parkay, Touch of Butter and Chiffon brands. In Canada, advertising for Nabisco Brands is done by Harrod & Mirlin of Toronto. The Leo Burnett Company of Toronto has the Kraft margarine business here but the account has been dormant for some time. Kraft is selling the business because it doesn't fit in with its long-term strategy of owning products with good profit margins and growing market shares. By purchasing the business, Nabisco is hoping to increase its market share for butter alternatives to 36% from 19%. Separately, Charles Phillips has joined Kraft Canada as president. Most recently he was senior vice-president of strategy and development for North America at the U.S. parent. Phillips has replaced Douglas Smith who left to pursue other career opportunities.