Kraft to sell Wedel to Lotte

28 June 2010 – Kraft Foods has signed an agreement to sell Cadbury’s E. Wedel-branded chocolate and sugar confectionery operations in Poland to Lotte Group for an undisclosed sum.

The sale, which is subject to customary regulatory approvals, includes the E. Wedel business, its related brands and a manufacturing facility in Warsaw. Approximately 1,000 Cadbury Wedel employees will transfer to Lotte Group.

Kraft will keep the remaining Cadbury business in Poland, including the Halls brand and other chocolate and sugar confectionery products sold in Poland as well as two manufacturing plants in Skarbimierz.

Subject to approval by the European Commission, Kraft Foods will also retain a third Cadbury plant in Bielany Wroclawskie, Poland.

This sale follows the European Commission’s decision to approve Kraft Foods’ acquisition of Cadbury conditioned on the divesture of the Wedel business in Poland and businesses in Romania.