• November 16, 2007

Kraft Foods is selling its Post cereal brands to Ralcorp, a store-branded cereal maker, in a $2.6 billion deal that will allow Ralcorp to go head-to-head with Kellogg and General Mills. It also will allow Kraft to better focus on its turnaround effort to revitalize sales.

Post's marketing and sales support team will continue to be based in New Jersey, and its research and development staff will remain in Battle Creek, Mich.

The brands being either spun off or split off - which will be decided closer to closing in mid-2008 -- include Shredded Wheat, Pebbles, Raisin Bran and Honey Bunches of Oats.

"This acquisition is indeed a watershed event for Ralcorp," said Kevin Hunt, the St. Louis-based company's co-CEO.

--Nina M. Lentini