In 1987, Kraft's strategy was back to being focused on the food industry. But this was not always the case when they Purchased Dart Industries. Dart's products included Tupperware containers, Duracell batteries and West Bend appliances. Mr. Richman, CEO of Kraft reversed directions and began pursuing the all-food strategy in 1986. By 1986, Kraft had spun off most of its nonfood business acquired in the Dart merger. Kraft sold its last nonfood asset, Duracell for $1.8 billion in June of 1988. Kraft use the money received from the sale of Duracell to repurchase shares of company stock and to repay off debt obligations.
On October 23, 1988, Kraft's board of directors rejected Philip Morris's bid of $90 per share because they felt this bid had under valued Kraft. Kraft's investment bank Goldman, Sachs & Co. had advised them not to accept this offer. Kraft's analysis valued its offer at $110 per share and therefore rejected Phillip Morris's offer. The stock market also felt that Kraft was undervalued because on the day of the announcement Philip Morris's share price dropped $4.50 (4%) and Kraft's share price jumped $28 (47%). On October 18th the day after the announcement, Kraft's share price jumped from $60.12 to $88.25. Two days later Kraft's stock was trading in the range of $92 to $102 per share.