Kraft Foods Creates New Stand-alone Business Unit for Meals, Desserts
Kraft Foods Group, Northfield, Ill., announced plans to create two new stand-alone business units, one being for meals and desserts (the other for enhancers and snack nuts). As a result, the company will be able to place even greater focus on brand-building while reducing the complexity of managing a portfolio with many distinct brands and product categories. The new business structures and leadership appointments are effective July 1.
"Since we launched the new Kraft, we've focused heavily on turbo-charging our iconic brands. And, we've made a lot of progress thanks to great marketing and innovation," says Tony Vernon, chief executive officer. "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."
The business units are being created by dividing the brands in the company's grocery segment into two stand-alone business units. The meals and desserts business will include such brands as Cool Whip whipped topping and Velveeta dinners and meal kits, among others. Kraft will begin reporting the financial results of these business units as separate segments at the end of its third fiscal quarter 2013. It will also make historical results for these new segments available by the end of its third quarter.
Michael Osanloo, executive vice president and president of meals and desserts will spearhead the reinvigoration of Kraft Macaroni & Cheese and Velveeta dinners. His team also launched one of Kraft's most recent new product successes—Velveeta Cheesy Skillets.