Kraft Foods Group Inc. (KRFT:US), the North American grocery business that separated from the snacks enterprise, said it will add two standalone business units to focus its brand-building work.
A meals and desserts division will market brands including Kraft Mac & Cheese and Velveeta dinners, Stove Top stuffing, Cool Whip and Jell-o, the Northfield, Illinois-based company said today in a statement. The second unit (KRFT:US) will center on so-called enhancers, such as A.1. steak sauce and Grey Poupon mustard, and snack nuts like Planters. The other units center on beverages, cheese, refrigerated meals and foodservice.
The expansion to six total business units will reduce the complexity of managing a disparate portfolio while increasing focus on brand-building, the company said. The new units begin operation July 1 and will report the first results at the end of the third quarter.
“We’ve focused heavily on turbocharging our iconic brands,” Chief Executive Officer Tony Vernon said in the statement.“We’re taking an important step to strengthen our focus.”
The meals and desserts unit will be run by Michael Osanloo, who currently manages Kraft’s grocery unit, the company said. Jane Hilk, senior vice president of marketing for Oscar Mayer, will run the Enhancers and snack nuts unit.
Kraft Foods declined 0.8 percent to $55.56 at 11:25 a.m. in New York. Through yesterday, the shares had risen 23 percent this year, compared with a 15 percent gain for the Standard & Poor’s 500 Index.
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