Sector News

Kraft Foods CEO to Retire by Year’s End

December 18, 2014
Food & Drink
Kraft Foods Group Inc. on Thursday said Chief Executive Tony Vernon will retire by the end of the year, naming its board chairman and PepsiCo Inc. veteran John Cahill as his successor to the top executive spot.
 
Shares of Kraft Foods were trading at all-time highs Thursday morning, recently rising more than 4% to $62.06.
 
Mr. Vernon led the company through the separation from its snacks business, now known as Mondelez International Inc., in 2012. The split left Kraft with supermarket mainstay brands such as Oscar Mayer, Maxwell House, Velveeta and Kool-Aid, while Mondelez includes brands such as Oreo, Cadbury and Ritz.
 
Mr. Vernon plans to retire on Dec. 27, but he will stay on as a senior adviser through March.
 
Mr. Cahill, 57 years old, was previously chief executive of Pepsi Bottling Group Inc., a leading bottler in the PepsiCo network, after spending nine years at the beverage and food company. He joined Kraft in 2012 as an executive chairman-designate ahead of the spinoff.
 
The management change comes as Kraft struggles to combat changing consumer tastes and high commodity prices. Food companies also are grappling with tougher competition and pressure from investors to improve margins.
 
In October, Kraft reported that its earnings fell 11% and revenue was flat in the latest period, as high commodity prices led the company to raise prices. Mr. Vernon has called the strategy risky, because many consumers are still in bargain-hunting mode despite the overall economic improvement.
 
For the full year, analysts polled by Thomson Reuters are expecting Kraft’s revenue to be flat. Next year, analysts expect Kraft’s revenues will inch up 2%.
 
By Chelsey Dulaney
 

comments closed

Related News

February 4, 2023

Unilever names FrieslandCampina’s Hein Schumacher as next CEO

Food & Drink

Schumacher will replace Alan Jope, who announced his decision to retire last September, less than a year after a failed attempt by Unilever to buy GlaxoSmithKline’s consumer healthcare business and just months after activist investor Nelson Peltz joined the company’s board.

February 4, 2023

Tetra Pak execs flag plant-based ice cream development hurdles as indulgent offerings expand

Food & Drink

Globally, plant-based ice creams have doubled their share of the market over the last five years, according to Tetra Pack. Pea protein and coconut milk are leading the way, but Tetra Pak cites data showing that oat-based ice cream launches have doubled in the previous year.

February 4, 2023

Examining the meaning of eco-labels: Is it time for mandated methodology?

Food & Drink

A myriad of so-called eco-labels are being rolled out across various F&B products, but with no gold standard or strict rules governing precisely what the logos mean and what methodology is behind them, concerns are growing that they will confuse consumers and ultimately be counterproductive.

How can we help you?

We're easy to reach