It seems like a counterintuitive move since Greek yogurt has gotten so trendy lately. Greek yogurt now accounts for a quarter of the total yogurt market.
Still, this may be the right way to go for Kraft. Why?
The market is completely dominated by Agro Farma, a private company whose Chobani brand has a whopping 60 percent market share.
Trailing far behind is Danone at 17 percent, followed by Fage and General Mills.
It has no hope of competing head-on with Chobani, and the push with Athenos just wasn't working. So it makes sense to focus on building its Athenos brand in other segments where it has a chance to grab more market share.
Plus, with the impending split of Kraft's businesses, it has more important things to worry about than its mediocre Greek yogurt biz.
Kraft runs the risk of alienating the consumers that were loyal followers of the Athenos brand, but it made sure to acknowledge them in its statement — that's savvy PR:
"Although we had a loyal following of Athenos Greek yogurt fans, we have decided to refocus our efforts on innovating new products for the Athenos brand. We know that this is very disappointing to consumers, and it was an extremely difficult decision for us to make."NOW SEE: The 11 Brands Kids Love The Most >
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