Archive for December, 2011
It is a virtual certainty Kraft Foods will split sometime in 2012. So how does the Chicago-based food company approach this? Simply, go about business as usual and make moves for the future when necessary.
Over the past few months, Kraft has had to answer questions about its future, while trying to make a profit at the same time. The main question that has been answered is “Who will run the two companies after the split?”
Chairman and CEO Irene Rosenfeld will stay on and keep her titles at the global snacking company. The CEO of the stand-alone North American grocery business will be Tony Vernon, president of Kraft Foods North America. Vernon will be partnered with John Cahill of Ripplewood Holdings to ensure a smooth transition.
It would seem as though Rosenfeld is the biggest winner, as she will be in charge of a company that had a 22 percent increase in net earnings for the most recent quarter. However, Vernon and Cahill will run a company which is projected to make $16 billion in annual revenue.
The recent third quarter success is not the only highlight for Kraft over the past few weeks. Last Thursday the snacking company was granted a perfect score on the Human Rights Campaign’s Corporate Equality Index. The HRC also added Kraft to its list of the best places to work.
All the success has not come without some controversy. Over the next two years, the snacking company plans to cut 200 jobs at Cadbury’s English factory, purchased over a year ago. At the same time, Kraft will invest $76 million into boosting production at the British confectionery company.
The other issue facing Kraft is the debate about whether or not it should use 97,000-pound trucks to make deliveries. Under U.S. law trucks, can weigh a maximum of 80,000 pounds on interstate highways, with exceptions in Maine and Vermont.
Once any problems are resolved it seems Kraft will have an interesting year in 2012.
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