America still spells cheese K-R-A-F-T -- but maybe not for long, if one of the company's investors gets his way.

Activist investor Nelson Peltz is eager to see the Northfield, Ill.-based food giant dump a number of its holdings, among them cheese, according to the Financial Times. Financial analysts say Kraft could consider jettisoning its cheese business if growth efforts fizzle. Such a move, of course, would mean Kraft losing its mantle as the nation's No. 2 dairy processor; its cheese business netted more than $6 billion in 2006.

Suggested suitors for Kraft cheese? The No. 1 processor, Dallas-based Dean Foods, which analysts reportedly admit is not fiscally equipped to handle such an acquisition. Also, Omaha-based ConAgra Foods -- which seems unlikely, considering ConAgra recently dumped its own cheese business. Further difficulty lies in what a buyer would call its new cheese -- since it would no longer belong to the company that so many identify with that product -- leading some to suggest that Kraft spin off its cheese and food unit.

Really, without Kraft, just what would be call Kraft cheese?

- J.D.

Added 7/26/07

Warren Buffett's Berkshire Hathaway is reported to have purchased a less-than-5 percent stake in Kraft. Time will tell whether he sides with Petlz or management on the recipe for Kraft's future success.