Kraft has named Irene Rosenfeld to replace CEO Roger Deromedi, who leaves the company immediately.
Rosenfeld returns to Kraft from Frito-Lay, where she has been CEO since 2004. Rosenfeld spent 20 years at Kraft (and General Foods), rising to the post of president of Kraft’s North American business before leaving to take charge at Frito-Lay. She played an instrumental role in integrating Nabisco when Kraft bought that company in 2000.
Meanwhile, PepsiCo has named Al Carey to replace Rosenfeld at Frito-Lay. Carey, who takes the president-CEO post immediately, returns to Frito-Lay from his post as president of PepsiCo Sales; he has spent nearly 20 years at Frito-Lay (the bulk of his 25-year career at PepsiCo), rising to COO.
“His appointment takes place at a time when PepsiCo’s portfolio of businesses is performing well and has strong momentum,” said PepsiCo CEO Steve Reinemund, in a statement. Frito-Lay’s revenues rose 6% in the first quarter, a strong contributor to PepsiCo’s 9% rise for the quarter.
Deromedi’s abrupt departure from Kraft follows a mutual decision between Kraft’s board and Deromedi that he leave the company and pursue other interests.
Kraft’s net revenues were fairly flat for the first quarter at $8.1 billion, up a mere 0.8%. Organic net revenues in North America rose 3.6%, per Kraft. The company’s 2005 net revenues were $9.67 billion, up 10% globally.
The change of guard comes as Kraft readies to spin off from parent Altria, which also owns Philip Morris. Independence should improve Kraft’s bottom line. The company is two years into a restructuring program that will cut 8,000 jobs, close 20 plants and shutter 10% of its SKUs (Xtra, Feb. 1, 2006).
“While the fundamentals of the business continue to improve, we are confident that Irene will accelerate the execution of Kraft’s growth strategy, build value for shareholders, and lead Kraft when it becomes a fully independent company,” said Kraft Chairman Louis Camilleri, in a statement.
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