In today's edition, analyst Austin Smith explains the best way to play Kraft's spinoff. Investors will have their pick between a high-growth international snacks division and a more stable domestic grocery segment. While the latter is expected to be less volatile and provide a hearty dividend, Austin likes the intentional snack division better. He believes Kraft's brands will have more upside in emerging markets, he likes the fact that Irene Rosenfeld will be hanging her hat with international snacks, and he believes Oreo is one of the best assets in Kraft's quiver of brands. If you look at the 2008 spinoff of Philip Morris from Altria, which closely resembles this Kraft split, you'd see strong growth from both segments, but more outperformance from the internationally focused Philip Morris division.
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