The way the cookie crumbles: Kraft to split in two

Less than 18 months after fattening up with the acquisition of Cadbury, Kraft plans to slim back down by jettisoning scores of its older food brands. The split, announced by Kraft chief executive Irene Rosenfeld yesterday, puzzled many analysts, but it sent Kraft shares sharply higher, even as the rest of the stock market was crashing.

Kraft's traditional grocery brands in North America, including Maxwell House coffee, Philadelphia cheese, Jell-O and its famous own-brand mac and cheese, will be spun off into a new company designed to appeal to value investors.

What remains, including the operations acquired with Cadbury, will be a "truly ubiquitous snacking powerhouse", Ms Rosenfeld said.