Kraft Foods last week announced a global reorganization that streamlines U.S. and international operations and puts former co-CEO Betsy Holden in a newly formed top marketing post: president-global marketing & category development. Holden was demoted as president-Kraft Foods North America in December (Dec. 18, 2003 Xtra).

Under Holden, the new global marketing and category development group will focus on spurring global expansion through category development across countries, new products and stepped-up marketing. The group will create Global Category Teams to replace Kraft’s Worldwide Category Councils. Holden also will oversee Kraft’s Global Marketing Resources, Health & Wellness and New Product Development divisions.

At the same time, Kraft North America and Kraft International merge key functions, including marketing, R&D, supply chain and IT, as global activities. Kraft also adopts a country-by-country overlay for local marketing executions. Those smaller geographic-based commercial units take P&L responsibility and are grouped into North America Commercial and International Commercial divisions. David Johnson becomes president of North America Commercial; Hugh Roberts becomes president of International Commercial.

The changes affect Kraft’s five business sectors worldwide: beverages, snacks, cheese and dairy, convenient meals and grocery.

A global “one company” structure lets Northfield, IL-based Kraft leverage global scope and local strength, says CEO Roger Deromedi.

“The most important opportunities and pressing challenges we face … demand that we become a more unified, global company,” Deromedi said in a statement. “But in becoming more global, we must keep and strengthen the local expertise that has built our success.”

The reorganization is motivated in part by sales declines. This fall, Kraft projected 2003 volume would grow about 1.5%; it lowered expectations when third-quarter volume growth came in 1% below projections. Overall, third-quarter volume fell 0.2%, due in part to divestitures. Volume for ongoing businesses rose 1%, and North America volume rose 0.9% (Oct. 21, 2003 Xtra).

Kraft is expected to announce more details about the new structure, 2003 results, its outlook for 2004 and long-term growth plan in its Jan. 27 presentation to analysts.

Seven senior execs report to Holden (with new job titles): Doug Burns, senior VP-Global Beverages Sector; John Baxter, senior VP-Global Snacks Sector; Rhonda Jordan, senior VP-Global Cheese & Dairy Sector; Mary Kay Haben, senior VP-Global Convenient Meals & Grocery Sectors; Paula Sneed, senior VP-Marketing Resources, responsible for global marketing services and e-commerce initiatives; Lance Friedmann, senior VP-Health & Wellness; Margo Lowry, senior VP-Development, who identifies new growth platforms and oversees worldwide best practices in new-product development.

In North America, four group VPs and three senior VPs report to Johnson. Group VPs are Liz Smith, president-U.S. Beverages & Grocery Sectors, (including coffee, refreshment beverages, enhancers, desserts and Post cereals); Daryl Brewster, president-U.S. Snacks Sector (including biscuits, confections and salted snacks); Kevin Ponticelli, president-U.S. Cheese & Dairy Sector (including Kraft Cheese and yogurt); and Rick Searer, president-U.S. Convenient Meals Sector (including Oscar Mayer, pizza, Boca and Back To Nature).

The senior VPs reporting to Johnson are Tom Sampson, president-North America Foodservice; Fred Schaeffer, general manager-Kraft Canada; and Brian Driscoll, senior VP-sales for North America Commercial.

Kraft Foods last week announced a global reorganization that streamlines U.S. and international operations and puts former co-CEO Betsy Holden in a newly formed top marketing post: president-global marketing & category development. Holden was demoted as president-Kraft Foods North America in December (Dec. 18, 2003 Xtra).

Under Holden, the new global marketing and category development group will focus on spurring global expansion through category development across countries, new products and stepped-up marketing. The group will create Global Category Teams to replace Kraft’s Worldwide Category Councils. Holden also will oversee Kraft’s Global Marketing Resources, Health & Wellness and New Product Development divisions.

At the same time, Kraft North America and Kraft International merge key functions, including marketing, R&D, supply chain and IT, as global activities. Kraft also adopts a country-by-country overlay for local marketing executions. Those smaller geographic-based commercial units take P&L responsibility and are grouped into North America Commercial and International Commercial divisions. David Johnson becomes president of North America Commercial; Hugh Roberts becomes president of International Commercial.

The changes affect Kraft’s five business sectors worldwide: beverages, snacks, cheese and dairy, convenient meals and grocery.

A global “one company” structure lets Northfield, IL-based Kraft leverage global scope and local strength, says CEO Roger Deromedi.

“The most important opportunities and pressing challenges we face … demand that we become a more unified, global company,” Deromedi said in a statement. “But in becoming more global, we must keep and strengthen the local expertise that has built our success.”

The reorganization is motivated in part by sales declines. This fall, Kraft projected 2003 volume would grow about 1.5%; it lowered expectations when third-quarter volume growth came in 1% below projections. Overall, third-quarter volume fell 0.2%, due in part to divestitures. Volume for ongoing businesses rose 1%, and North America volume rose 0.9% (Oct. 21, 2003 Xtra).

Kraft is expected to announce more details about the new structure, 2003 results, its outlook for 2004 and long-term growth plan in its Jan. 27 presentation to analysts.

Seven senior execs report to Holden (with new job titles): Doug Burns, senior VP-Global Beverages Sector; John Baxter, senior VP-Global Snacks Sector; Rhonda Jordan, senior VP-Global Cheese & Dairy Sector; Mary Kay Haben, senior VP-Global Convenient Meals & Grocery Sectors; Paula Sneed, senior VP-Marketing Resources, responsible for global marketing services and e-commerce initiatives; Lance Friedmann, senior VP-Health & Wellness; Margo Lowry, senior VP-Development, who identifies new growth platforms and oversees worldwide best practices in new-product development.

In North America, four group VPs and three senior VPs report to Johnson. Group VPs are Liz Smith, president-U.S. Beverages & Grocery Sectors, (including coffee, refreshment beverages, enhancers, desserts and Post cereals); Daryl Brewster, president-U.S. Snacks Sector (including biscuits, confections and salted snacks); Kevin Ponticelli, president-U.S. Cheese & Dairy Sector (including Kraft Cheese and yogurt); and Rick Searer, president-U.S. Convenient Meals Sector (including Oscar Mayer, pizza, Boca and Back To Nature).

The senior VPs reporting to Johnson are Tom Sampson, president-North America Foodservice; Fred Schaeffer, general manager-Kraft Canada; and Brian Driscoll, senior VP-sales for North America Commercial.