Kraft Foods in the United States plans to split into two independent companies by the end of next year.
One will be a global snacks business, with estimated revenues of $US32 billion will include Oreo biscuits and Cadbury, which will focus on fast-growing, developing markets.
The other company, a North American food business with revenues of $US16 billion, will take in brands including Kraft and Philadelphia cheeses, and primarily focus on growing revenue in North America.
Kraft says its business has naturally grown in two different directions, that differ in their future strategic priorities, growth profiles and operational focus.
Kraft also reported a rise in profits for the second quarter to $US976 million - 4% more than a year earlier.