Kraft Foods Group chairman John Cahill will take on the role of CEO at the US food group, with chief executive Tony Vernon set to step down.
The Oscar Mayer and Planters owner said Vernon, who has been its CEO since the spin-off from Mondelez International in 2012, had “informed the board of his intention retire as CEO” on 27 December.
“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,” Mackey McDonald, Kraft’s lead independent director, said.
Vernon will stay on as a Kraft director until its next annual meeting in 2015. He said: “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. I leave knowing that we are on the right path with a strong leader in place ready to hit the ground running.”
Cahill joined the old Kraft Foods in January 2012 as executive chairman-designate for North American grocery and became executive chairman of Kraft Foods Group when the business was split in two that October. In March this year, Cahill became the company’s non-executive chairman.
Before joining Kraft Foods, Cahill was industrial partner at private-equity firm Ripplewood Holdings from 2008 to 2011.
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By GlobalDataHe spent nine years at Pepsi Bottling Group, including a stint as chairman and CEO between 2003 and 2006.
He said: “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.
“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.”
Shares in Kraft were up 3.63% US$61.72 at 10:13 ET today.
