Kraft Foods Group CEO Tony Vernon is stepping down from the helm of the company, with chairman John Cahill taking over the job. Vernon will retire on 27 December, the last day of Kraft’s fiscal year, the company said.
Vernon will remain an adviser through March and stay on as a board member until the next annual meeting in 2015.
He shepherded Kraft through its first two years as an independent company, following its split with Mondelez International in October 2012.
While Kraft has a stable of household brands, it has struggled to maintain growth. Sales are projected to be little changed this year while profit shrinks 31 per cent, according to data compiled by Bloomberg.
“When you announce your retirement in 12 days, you were probably pushed out,” said Brian Yarbrough, an analyst with Edward Jones & Co.
“As far as performance, they definitely haven’t hit their targets.”
Cahill, 57, joined Kraft in 2012 and became executive chairman when it was spun off from Mondelez. He previously served as chairman and CEO of Pepsi Bottling Group and spent nine years at PepsiCo.
The company is looking to Cahill to fulfill its “potential as the industry leader,” Mackey J. McDonald, the lead independent director on Kraft’s board, said.
News by Bloomberg, edited by ESM
