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NORTHFIELD, Ill. — Kraft Foods Inc. has appointed the chairmen and chief executive officers of the two companies it will form next year when it wraps up a planned spin-off of its grocery business.
The packaged foods giant announced in early August that its board aims to create two independent public companies: a global snacks business with revenue of about $31 billion and a North American grocery business with sales of about $17 billion.
To that end, the company plans a tax-free spin-off of the grocery business to Kraft shareholders, which it expects to complete by the end of 2012.
On Monday, Kraft said Irene Rosenfeld, 58, currently chairman and CEO of Kraft Foods, will be chairman and CEO of the global snacks company. Meanwhile, Tony Vernon, 55, currently executive vice president and president of Kraft Foods North America, will become CEO of the North American grocery company.
In addition, plans call for John Cahill, 54, currently an industrial partner of private equity firm Ripplewood Holdings LLC, to become nonexecutive chairman of the North American grocery company. Kraft said Cahill initially will serve as executive chairman, "reflecting the tremendous effort required to launch and transition to a public company," and will join Kraft Foods in January to begin work on the separation.
"Irene, John and Tony are three of the finest executives in business today," stated Mark Ketchum, lead director on the Kraft Foods board. "Their commitment to shareholder value, passion for brands and focus on sound financial management give the board great confidence in the future of the snacks and grocery companies."
