"Our decision to sell Cream of Wheat is part of a broader effort at Kraft to focus our portfolio," Rick Searer, president of Kraft's North America commercial segment, said in a statement.
Last year, the Cream of Wheat brand had a net revenue of $60 million.
The sale requires regulatory approval.
The Northfield-based company said it expects to record a pretax asset impairment charge of $69 million. The deal will be dilutive by .01 cent per share in 2007.