000129 Kraft Foods to Buy Soy Burger Maker Boca BurgerJanuary 25, 2000Northfield, IL - Kraft Foods Inc. said it would acquire Boca Burger Inc. for an undisclosed sum, joining a growing list of food companies buying into the trendy soy market. Kraft Foods, a division of Philip Morris Cos. Inc., said the deal with closely held Boca was expected to close next month. Chicago-based Boca had 1999 revenues of about $40 million. “Boca Burger gives Kraft an excellent position in the high-growth meat alternatives category, which has shown annual double-digit increases for the past five years,” Rick Searer, president of the Oscar Mayer and pizza divisions of Kraft Foods, said. Soy products have been a hot commodity for U.S food makers recently after the U.S. Food and Drug Administration said companies could post health claims on low-fat foods containing at least 6.25 grams of soy protein per serving. Studies show adults who consume a total of 25 grams daily of soy protein could see a significant lowering of their cholesterol, which reduces the risk of heart disease. In recent months, leading U.S. cereal maker Kellogg Co. (NYSE:K - news) bought vegetarian and health foods maker Worthington Foods Inc., and food company H.J. Heinz Co. (NYSE:HNZ - news) bought a stake in Hain Food Group Inc. (NasdaqNM:HAIN - news), which makes soy beverages, among other things. Several other companies have announced plans to develop soy-based foods in hopes of capitalizing on the FDA-approved health claim. Boca Burger has about 145 employees, and manufacturing facilities in Ft. Lauderdale, Fla., and Hobbs, N.M.. After a transition period, Kraft plans to move Boca's headquarters to Madison, Wis., where its Oscar Mayer division is based, from Chicago. Kevin Scott, currently executive vice president and general manager of Kraft's pizza division, will head the new Boca Foods division.
E-mail: sflanagan@sprintmail.com |
