Spinoffs: Crash Diet for Food Firms

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In the '70s packaged-food companies went on a buying binge, gobbling up disparate lines of business that ranged from luggage to toys to women's clothing. Now many are discovering that their eyes were bigger than their stomach, and they are getting back to basic areas of expertise. The latest to join the trend is Chicago's Quaker Oats, the breakfast giant. It will shed its nonfood division, the Specialty Retailing Group, which accounts for 6% of the company's $3.67 billion in sales. Acting on the same impulse, Northbrook, Ill.-based Dart & Kraft (1985 sales: $9.9 billion) had previously announced that it would split into two companies. The Kraft portion will retain its name and virtually all of the food lines, including processed cheeses and salad dressings. The other, still unnamed firm will make Tupperware and electrical appliances. And Chicago's Beatrice Foods (1985 sales: $11.8 billion) has agreed to sell some $2.5 billion worth of subsidiaries, including Playtex intimate apparel and Avis Rent-a-Car.