NEW YORK (CNN/Money) - Kraft Foods may put its well-known Oscar Mayer, Post cereal and Altoids brands up for sale as the No. 1 U.S. food maker looks to slim down its business units, according to two separate reports Monday.

According to the New York Post, Northfield, Ill.-based Kraft (Research) is reportedly weighing strategic alternatives for the Oscar Mayer meats and Post cereal lines, including the possibility of selling those divisions.

Citing people familiar with the matter, the report said Kraft has not yet decided whether to begin a formal auction process for either brand yet, although it has already met with some investment banks to gauge market interest in those assets and determine their value.

The Post said Oscar Mayer -- which sells Oscar Mayer and Louis Rich-brand bacon, hot dogs and lunch meat -- could carry a price tag of as much as $1 billion.

Hormel Foods (Research), ConAgra Foods (Research), SmithField (Research) and Tyson Foods (Research) could be likely bidders for the Oscar Mayer unit, the report said.

Additionally, PepsiCo (Research), parent of Quaker Oats, could be a possible buyer for Post Cereals, which ranks third in U.S. cereal sales behind Kellogg Co. (Research) and General Mills (Research), the Post said.

Separately, the Wall Street Journal reported Monday that Kraft's long-awaited revamp of its portfolio of brands could also include the sale of Altoids breath mints and Life Savers candies.

The two businesses are likely to fetch more than $1 billion, the paper quoted people familiar with the matter.

Companies that could be potential buyers include Hershey Foods Corp. (Research), Cadbury Schweppes PLC (Research) and Wm. Wrigley Jr. Co. (Research), analysts said. Kraft, Hershey and Wrigley declined to comment. Cadbury Schweppes couldn't be reached.

Kraft has hired UBS AG to assist it in auctioning the two brands, people familiar with the deal said. Kraft is a majority-owned unit of Altria Group Inc. (Research)

The possible sale, which was reported on TheDeal.com., is part of Chief Executive Roger Deromedi's effort to focus Kraft on fewer product areas while at the same time expanding its presence overseas to build up brands with global scale. While Altoids and Life Savers are well-known brands in the U.S., they have a smaller presence internationally.

When Deromedi became the sole CEO of Kraft late last year, he pledged to reverse the company's market-share declines and flagging sales. But in July, Kraft lowered its full-year earnings outlook as it reported a 25% decline in second-quarter profits.

The company reports its third-quarter results later Monday.

While Kraft doesn't break out sales of individual brands, Altoids and Life Savers generate roughly $661 million in combined retail sales, Lehman Bros. estimates.