Kraft Foods Creates 2 New Business Units

NORTHFIELD, Ill.Kraft Foods Group announced plans to create two new, standalone business unitsMeals and Desserts, and Enhancers and Snack Nuts effective July 1. By creating the new business units, the company will be able to place a greater focus on brand-building, while reducing the complexity of managing a portfolio with many distinct brands and product categories.

Since we launched the new Kraft, weve focused heavily on turbocharging our iconic brands. And weve made a lot of progress thanks to great marketing and innovation," said Kraft CEO Tony Vernon. With the creation of our two newest business units and great leaders in place, were 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 companys 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.

The Meals and Desserts business unit will include many of Krafts leading brands, such as 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.

The Enhancers and Snack Nuts business unit will include 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.

The leaders of the new business units will report directly to CEO Tony Vernon. Heading up the Meals and Desserts unit is Michael Osanloo, executive vice president and president. He is currently the executive vice president and president of Krafts Grocery business unit, and spearheaded the reinvigoration of Kraft Macaroni & Cheese and Velveeta dinners. The Enhancers and Snack Nuts unit will be lead by Jane Hilk, executive vice president and president. 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 ground-breaking new advertising campaigns for its flagship brands and introduced Oscar Mayer Selects, one of Krafts newest $100 million product lines.

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.