Kraft Foods outlines plans for North American grocery biz
BOSTON — The future North American grocery business of Kraft Foods will deliver steady and profitable top-line growth, consistent bottom-line growth and a superior dividend payout, according to the business' future executive team.
Speaking this week at the Barclays Capital Back-to-School Consumer Conference, the future leadership team said that led by such brands as Kraft, Oscar Mayer and Maxwell House, Kraft Foods Group will be North America's fourth-largest consumer packaged food and beverage company out of the gate, with revenues of approximately $19 billion in 2011. The team added that 10 of the company's brands achieved sales of $500 million or more in 2011, while an additional 17 brands posted sales of $100 million or more in 2011. What's more, approximately 80% of Kraft Foods Group's revenue comes from categories in which the company holds the No. 1 or No. 2 market position.
Kraft Foods Group's future growth will be driven by a four-part strategic plan: Making its people its competitive edge, executing with excellence, "turbocharging" its iconic brands and redefining efficiency. Additionally, the company expects to be well-positioned over the long term to deliver steady, reliable growth with a strong focus on cash flow to fund a highly competitive dividend and reinvestment in people, innovation and brand-building.
"I have the honor to introduce a new Kraft, one with the spirit of a startup and the soul of a powerhouse," said Tony Vernon, president of Kraft Foods North America and future CEO of Kraft Foods Group. "Our aim is to be North America's best food and beverage company, and we'll get there by continuing to offer products consumers love, creating a performance-based culture that motivates and excites employees and becoming the best investment in the industry."
As previously announced, Kraft Foods plans to spin off Kraft Foods Group, which will hold Kraft Foods' North American grocery business on Oct. 1. Kraft Foods Group will trade on the NASDAQ stock exchange under the ticker symbol "KRFT." Following the spinoff, Kraft Foods will be renamed Mondelez International. Mondelez International will trade on the NASDAQ stock exchange under the ticker symbol "MDLZ."
"Tony and his team have a clear mission and are ready to deliver," said John Cahill, future executive chairman of Kraft Foods Group. "I'm confident we have the right plans and people in place to unlock the value of the North American grocery business after its spinoff."