By Chelsey Dulaney
Kraft Foods Group Inc. on Thursday said Chief Executive Tony
Vernon will retire by the end of the year, naming its board
chairman and PepsiCo Inc. veteran John Cahill as his successor to
the top executive spot.
Shares of Kraft Foods were trading at all-time highs Thursday
morning, recently rising more than 4% to $62.06.
Mr. Vernon led the company through the separation from its
snacks business, now known as Mondelez International Inc., in 2012.
The split left Kraft with supermarket mainstay brands such as Oscar
Mayer, Maxwell House, Velveeta and Kool-Aid, while Mondelez
includes brands such as Oreo, Cadbury and Ritz.
Mr. Vernon plans to retire on Dec. 27, but he will stay on as a
senior adviser through March.
Mr. Cahill, 57 years old, was previously chief executive of
Pepsi Bottling Group Inc., a leading bottler in the PepsiCo
network, after spending nine years at the beverage and food
company. He joined Kraft in 2012 as an executive chairman-designate
ahead of the spinoff.
The management change comes as Kraft struggles to combat
changing consumer tastes and high commodity prices. Food companies
also are grappling with tougher competition and pressure from
investors to improve margins.
In October, Kraft reported that its earnings fell 11% and
revenue was flat in the latest period, as high commodity prices led
the company to raise prices. Mr. Vernon has called the strategy
risky, because many consumers are still in bargain-hunting mode
despite the overall economic improvement.
For the full year, analysts polled by Thomson Reuters are
expecting Kraft's revenue to be flat. Next year, analysts expect
Kraft's revenues will inch up 2%.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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