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NORTHFIELD, Ill. — John Cahill, chairman of Kraft Foods Group Inc., is slated to add the title of chief executive officer, succeeding Tony Vernon, who is retiring.
Kraft said Thursday that Vernon plans to retire as CEO on Dec. 27, the end of the company’s fiscal year. Plans call for him to remain as a senior adviser until March 31 and as a director until the next annual meeting in 2015.
Vernon, who will be 59 when he retires as a director, has served as CEO since the Kraft’s spin-off from Mondelez International in October 2012. Before that, he was a company executive vice president and president of Kraft Foods North America.
Prior to joining Kraft in August 2009, Vernon spent 23 years at Johnson & Johnson in a variety of leadership posts, most recently as company group chairman of DePuy Inc., an orthopedics subsidiary of J&J, from 2004 to 2005.
"It has been a privilege to lead Kraft and establish it as an independent company. It has been rewarding to see the team’s many ideas bear fruit in the marketplace as together we launched an $18 billion startup with the soul of a powerhouse," Vernon said in a statement. "As I’ve said before, the hallmark of every great company is that it makes the right adjustments at the right time. I’ve worked in close partnership with John Cahill, an outstanding executive in the consumer industry, and have no doubt that the Kraft team will benefit from his strong leadership in the months and years to come."
The 57-year-old Cahill joined Kraft in January 2012 as executive chairman designate for North American grocery and became executive chairman as of the spin-off. He transitioned to a nonexecutive chairman role this past March.
Cahill spent nine years at The Pepsi Bottling Group Inc., most recently as chairman and CEO from 2003 to 2006 and as executive chairman until 2007. He previously spent nine years with PepsiCo Inc. in a variety of leadership positions. Cahill currently is lead independent director of American Airlines Group Inc. and a director of Colgate-Palmolive Co.
"I’m honored to be appointed CEO, and I’m excited to lead Kraft through the opportunities and challenges that lie ahead. Since the launch of Kraft, I have worked closely with the senior leaders of the company and its world-class brand portfolio. The industry is undergoing a great deal of rapid change, and it is important that we keep pace and indeed stay ahead of these changes as we build a stronger Kraft," Cahill stated. "While our immediate priority will be to remain focused on delivering results, we will also take a fresh look at the business to prioritize our investments and focus on sustainable profit growth. I look forward to working with our talented team at Kraft on these efforts as we build upon the accomplishments over the last two years. We will have more to say about that in early 2015."
He added, "I also want to extend my thanks and gratitude for Tony’s commitment, leadership and passion for the brands and the people of Kraft during these past two-plus years. He has transformed the company and set it on a path to success."
Kraft Foods Group, one of North America’s largest consumer packaged food and beverage companies, has annual revenue of more than $18 billion and a lineup of brands that include Kraft, Capri Sun, Jell-O, Kool-Aid, Lunchables, Maxwell House, Oscar Mayer, Philadelphia, Planters and Velveeta.
"With the company on solid footing after the spin-off, the time is right for new leadership to fulfill our potential as the industry leader. The board and Tony agree that we need to accelerate the pace of change," commented Kraft lead independent director Mackey McDonald. "We are fortunate to have an executive of John Cahill’s caliber to lead Kraft through the next phase of the company, and I want to thank him for taking on this role. John is a successful consumer products CEO who has run world-class companies, with the experience to identify and realize opportunities to grow Kraft’s brand portfolio and take the company to greater heights," he added.
