Kraft Foods Group will phase out its fleet of 200 tractors and 700 trailers by the end of 2014, a company spokeswoman said.
Joyce Hodel, a corporate affairs specialist for the Northfield, Illinois-based company, said the decision to eliminate the fleet reflects a desire to work more closely with contract and for-hire carriers that already transport products and materials to Kraft’s production facilities and distribution centers.
“This is not a reflection on our fleet employees,” Hodel said in an interview with Transport Topics. “It’s part of a broader focus on supply chain integration.”
The change will occur in three phases — late June, early August and late September — and result in the loss of jobs for 260 drivers and 25 support staff at 10 locations in the United States.
In 2012, Kraft Foods spun off its snack food business to Mondelez International Inc., a company based in Deerfield, Illinois, that also took over a sizeable portion of Kraft’s private fleet. Mondelez International ranks No. 51 on the Transport Topics Top 100 Private Carriers list with 626 tractors, 318 straight trucks and 762 trailers.
Kraft restructured is remaining business to focus on producing meals and desserts, sauces, salad dressings and nuts for distribution to grocery stores in North America.