US: Kraft US arm to "turbo-charge" brands
Kraft Foods Group will invest in brands like Oscar Mayer to "grow faster" than rivals
The company set to form Kraft Foods' North American business will look to "turbo-charge" its "iconic" brands to gain an edge on its competitors, the CEO-designate of the business has claimed.
Kraft will split next month to form a North American grocery company and global snacks arm and late last week told investors of their priorities for both businesses.
The North American grocery company, to be called Kraft Foods Group, will own brands including Oscar Mayer meats and Jell-O puddings.
Speaking to investors and analysts at the Barclays Capital Back to School Conference, Kraft Foods Group said it had a "four-part strategic plan", including becoming a "more nimble, less layered" business and "turbo-charging" its brands.
Kraft Foods Group said it would aim to "grow faster than the market and key competitors" and added: "This means delivering the right products at the right price points, introducing big bet innovations like MiO, which created an entirely new product category of liquid beverage enhancers, addressing health & wellness needs through the reformulation of existing products and introduction of new products, and investing in world-class marketing. Increased advertising in brands like Velveeta, Philadelphia, Kraft Mayo and Capri Sun has already resulted in significant sales increases."
The company plans to include share ownership in the incentive plans it awards to employees to "reinforce the alignment between employee and shareholder interests". It also plans to create a "Kraft university" to train staff.
Tony Vernon, president of the current Kraft's North American business, will be CEO of Kraft Foods Group. He said the new company will have "the spirit of a startup and the soul of a powerhouse".
Vernon added: "Our aim is to be North America's best food and beverage company, and we'll get there by continuing to offer products consumers love, creating a performance-based culture that motivates and excites employees and becoming the best investment in the industry."
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