Trade Resources Company News Kraft Foods Is Set to Split Its Grocery Segment to Two Standalone Business Units

Kraft Foods Is Set to Split Its Grocery Segment to Two Standalone Business Units

US-based c - Meals and Desserts, and Enhancers and Snack Nuts in order to focus on brand-building while reducing the complexity of managing a portfolio of distinct brands and product categories.

The new business structures and leadership appointments will be effective 1 July.

Kraft Foods stated that the categories and brands that have natural synergies such as Cool Whip and JELL-O will continue to remain together, while the Planters brand will benefit from having the snack nuts and peanut butter categories under one leadership structure.

The Meals and Desserts unit will include brands such as Cool Whip whipped topping, Jet-Puffed marshmallows, JELL-O dry packaged and ready-to-eat desserts, Kraft Mac & Cheese dinner, Shake 'N Bake coatings, Stove Top stuffing mix and Velveeta dinners and meal kits.

Enhancers and Snack Nuts will have A.1. steak sauce, Grey Poupon premium mustards, Kraft and Bulls-Eye barbecue sauces, Kraft and Good Seasons dressings, Kraft and Miracle Whip spoonable dressings and Planters nuts, trail mixes and peanut butters.

The company will begin reporting the financial results of these business units as separate segments at the end of third quarter of 2013.

Meals and Desserts executive vice president and president Michael Osanloo and Enhancers and Snack Nuts executive vice president and president Jane Hilk will lead the new business units and will report to Kraft Foods chief executive officer Tony Vernon.

Tony Vernon said that since the launch of the new Kraft, the company focused on strengthening its brands and has made a lot of progress.

"With the creation of our two newest business units and great leaders in place, we're taking an important step to strengthen our focus on some of the most beloved brands in North America," Vernon added.

In October 2012, Kraft Foods spun off its snacks and confections business to a new company called Mondelez International and its North American grocery business into a new company called Kraft Foods.

With annual revenues of more than $18bn, Kraft Foods is one of the largest consumer packaged food and beverage companies in North America and employs 23,000 people in the US and Canada. Its brands include Kraft, Maxwell House, Oscar Mayer, Philadelphia, Planters, Velveeta, Capri Sun, JELL-O and Lunchables.

Source: http://sweetsanddesserts.food-business-review.com/news/kraft-foods-to-split-grocery-division-into-two-units-170613
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Kraft Foods to Split Grocery Division Into Two Units