Kraft Announces Management Shake-Up Following Q4 Losses

13 Feb 2015 --- US food conglomerate Kraft Foods, which makes brands such as Philadelphia Cheese and Kenco Coffee, has announced management changes on the same day as disappointing Q4 results were published.

The company reported a net loss of $398m, compared with profit of $931m in the same period last year. The loss was attributed to a one-time charge of $1.36bn in employee pension plans.

Kraft’s chief financial officer Teri List-Stoll, as well as two other board members, chief marketing officer Deanie Elsner and executive vice president of research & development and quality& innovation Chuck Davis are to go.

New leadership positions have been created with immediate effect. The company said that the management changes will position the company for future growth and success. George Zoghbi, currently Vice Chairman, Operations, R&D, Sales and Strategy, has been named Chief Operating Officer. The company also announced that Chris Kempczinski, who currently leads Kraft’s Canada business unit, will assume an expanded role as Executive Vice President of Growth Initiatives and President of International.

The newly created leadership positions reflect Kraft’s commitment to accelerating the pace of change and improving execution, and will support the development of a plan that puts the company on a clear path to long-term sustainable growth.

John Cahill, CEO and chairman, said: “I am excited to work with the management team as we continue to build a stronger Kraft and fulfill our potential as the industry leader. Together, we will chart a course of innovation and brand rejuvenation that is built on clear strategy and efficient operations.”

Kraft’s shares were down 2.5% at close of business on Thursday.