NORTHFIELD, Ill. -- Placing a greater focus on brand-building while reducing the complexity of managing a portfolio with many distinct brands and product categories, Kraft Foods Group Inc. has announced plans to create two new, standalone business units: Meals & Desserts and Enhancers & Snack Nuts.
As reported in A Raymond James/CSP Daily News Flash on Friday, the company is creating the business units by dividing the brands in its Grocery segment into two standalone business units. Categories and brands that have natural synergies, such as 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.
The business units will include many of Kraft's leading brands:
- Meals & 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 & Snack Nuts: A.1. steak sauce, Grey Poupon 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 leaders of the new business units will report directly to CEO Tony Vernon. Michael Osanloo will be executive vice president and president of Meals & Desserts. Currently executive vice president and president of Kraft's Grocery business unit, Osanloo spearheaded 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.
Jane Hilk will be executive vice president and president of Enhancers & Snack Nuts. Hilk is a 22-year veteran at Kraft who currently serves as senior vice president of marketing for Oscar Mayer. Under her leadership, the business launched new advertising campaigns for its flagship brands and introduced Oscar Mayer Selects, one of Kraft's newest $100 million product lines.
"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."
The new business structures and leadership appointments are effective July 1.
"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 Vernon. "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."
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 will also make historical results for these new segments available by the end of its third quarter.
Northfield, Ill.-based Kraft Foods Group is one of North America's largest consumer packaged food and beverage companies, with annual revenues of more than $18 billion.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.