Kraft Foods Group Creates Two New Business Units
Kraft Foods Group plans to create two new standalone business units: Meals and Desserts, and Enhancers and Snack Nuts. With the creation of these new business units, the company says it 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 become effective July 1.
The business units are being created by dividing the brands in the company’s grocery segment into two standalone business units. Categories and brands that have natural synergies like Cool Whip and Jell-O will remain together. The Planters brand will benefit from having the snack nuts and peanut butter categories managed under one leadership structure, Kraft says.
The business units will include many of Kraft’s leading brands:
• Meals and Desserts—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—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.
Kraft will begin reporting the financial results of these business units as separate segments at the end of its third fiscal quarter 2013. The company also will make historical results for these new segments available by the end of its third quarter.
“Since we launched the new Kraft, we’ve focused heavily on turbocharging our iconic brands. And we’ve made a lot of progress thanks to great marketing and innovation,” said Tony Vernon, Kraft CEO. “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.”
Michael Osanloo will be EVP and president of Meals and Desserts. Currently EVP and president of Kraft’s grocery business unit, Osanloo spearheaded the reinvigoration of Kraft Macaroni & Cheese and Velveeta dinners, Kraft says. His team also launched one of Kraft’s most recent new product successes, Velveeta Cheesy Skillets.
Jane Hilk will be EVP and president of Enhancers and Snack Nuts. Hilk is a 22-year veteran at Kraft who currently serves as SVP of marketing for Oscar Mayer. Under her leadership, the business launched ground-breaking new advertising campaigns for its flagship brands and introduced Oscar Mayer Selects, one of Kraft’s newest $100 million product lines, the company says.
The leaders of the new business units will report directly to Vernon.
“These businesses have many of Kraft’s most well-known and celebrated brands,” said Vernon. “I’m excited to have two of our most seasoned and strategic leaders bringing their considerable talents to these brand franchises.”