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

May 21, 2022

Cécile Béliot becomes Bel Group CEO

Food & Drink

Cécile Béliot has assumed the role of Bel Group chief executive officer, following the decision to separate the roles of chairman and CEO. The separation of the functions will enable Bel Group to develop in three areas of healthy snacking. Meanwhile, the company’s former CEO, Antoine Fiévet, has had his mandate renewed as chairman of the board.

May 21, 2022

“Corporate greed and dereliction of duty”: FDA commissioner slammed over infant formula shortage

Food & Drink

US Food and Drug Administration (FDA) Commissioner Dr. Robert Califf was grilled by lawmakers during a House Appropriations subcommittee hearing, where he was slammed over the agency’s handling of the escalating infant formula shortage.

May 21, 2022

Sweegen hails antioxidants and bitter blocking tech a turning point for sugar reduction and healthy aging

Food & Drink

Sweegen is ramping up its efforts to reduce sugar across F&B applications while simultaneously tapping into the benefits of using antioxidants and bitter blocking technology. Speaking to FoodIngredientsFirst, Casey McCormick, vice president of global innovation at Sweegen, says product developers can find a broad range of solutions in Sweegen’s nature-based sweetener systems as brands elevate better-for-you foods.