Kraft Foods Announces Integration Plan for Nabisco Acquisition and Names Key Executives.Business Editors
NORTHFIELD, Ill. & RYE BROOK, N.Y.--(BUSINESS WIRE)--Dec. 7, 2000
Kraft Foods Kraft Foods Inc. (NYSE: KFT) is the largest food and beverage company headquartered in North America and the second largest in the world after Nestlé SA.
The Philip Morris Company (now known as Altria Group), a company that produces tobacco products, acquired Kraft for , Inc. today announced its plans for integrating operations of Nabisco with its Kraft Foods North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Kraft Foods International businesses, and named executives to key positions in the combined operations For the department of the British War Office during World War II, see .
In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
This follows the announcement by Philip Morris Companies Inc. earlier today that the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Federal Trade Commission (FTC FTC
See Federal Trade Commission (FTC). ) has approved a consent agreement in connection with the acquisition of Nabisco Holdings Corporation by Philip Morris. FTC approval clears the way for Philip Morris to complete the acquisition of Nabisco.
Upon closing, Nabisco's businesses in North America (including the United States, Canada, Mexico and Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. ) will be integrated into Kraft Foods North America, headquartered in Northfield, IL, and led by Betsy Holden Betsy Holden is a corporate director of Tribune Company and former CEO of Kraft Foods. She received her A.B. from Duke University, and an M.Ed and an MBA from Northwestern University. She was born in 1956 in Pittsburgh. , President and Chief Executive Officer of Kraft Foods North America. Nabisco International businesses will be integrated into Kraft Foods International, headquartered in Rye Brook, NY and led by Roger K. Deromedi, President and Chief Executive Officer of Kraft Foods International. On a worldwide basis, the new Kraft Foods with Nabisco becomes a $35 billion revenue company, with $5.5 billion in underlying operating companies income, based on 1999 pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts.
The phrase pro forma combined results.
Kraft Foods North America
"This is a landmark event for Kraft," said Betsy Holden, President and Chief Executive Officer of Kraft Foods North America. "Nabisco brings to Kraft exceptional brands and outstanding people. As these two great companies come together, we are creating an industry leader committed to growth, focused on innovation, and powered by world-class quality, productivity and customer service."
The new Kraft Foods North America will have the following financial reporting segments: Cheese, Meals and Enhancers; Oscar Mayer Oscar Mayer is an American meat and cold cut production company, now owned by Kraft Foods, known for its hot dogs, bologna, bacon and Lunchables products.
German immigrant Oscar Ferdinand Mayer and Pizza; Biscuits, Snacks and Confectionery; and Beverages, Desserts and Cereals. These four segments are comprised of 14 operating divisions, including three new business divisions. The integration will affect primarily the Biscuits, Snacks and Confectionery segment and the Cheese, Meals and Enhancers segment. In addition, the company is realigning other Nabisco businesses into existing divisions and consolidating Nabisco's support functions and activities into the appropriate Kraft functional groups.
Kraft Foods North America is creating three new divisions in its Biscuits, Snacks and Confectionery segment - the Nabisco Biscuit Division, located in East Hanover East Hanover is the name of the following places in the United States of America:
High-level development of policy, especially official government policy.
Of, relating to, or involving the making of high-level policy: group.
To bring greater strategic focus to the biscuit category, the Nabisco Biscuit Division will now include the U.S. and Canadian cookies and cracker businesses. Leading this division will be Daryl Brewster, 44, formerly President of Specialty Products at Nabisco, who has been named Executive Vice President, Kraft Foods, and General Manager of the Nabisco Biscuit Division. The Milk-Bone dog biscuit business will also be part of the division.
The Confections Division will include all of Nabisco's confectionery businesses such as Lifesavers and Favorite Brands candies. Denise Morrison, 46, formerly Nabisco Senior Vice President and General Manager, Down the Street Channels, has been appointed Executive Vice President, Kraft Foods, and General Manager of the Confections Division. In addition, to take advantage of significant growth and synergy opportunities, Kraft's Callard & Bowser Bowser may mean:
The Planters Division will include all of the Planters nut products. David Yale, 45, previously Vice President and General Manager of Planters at Nabisco, has been appointed Executive Vice President, Kraft Foods, and General Manager of the Planters Division.
In addition, Brian Driscoll, 41, formerly Senior Vice President of Sales and Logistics, the Nabisco Biscuit Company, has been named Senior Vice President of Sales and Customer Logistics for Nabisco Biscuit and Snacks, with responsibility for the U.S. Direct Store Delivery sales system supporting the Nabisco Biscuit Division, along with Confections and Planters.
Brewster, Driscoll, Morrison and Yale will all report to Lenny and join Kraft Foods North America's Operating Committee, comprised of the company's top divisional and functional leadership.
In addition to these three new divisions, Kraft Foods North America will add other businesses to the company's existing division structure.
A.1. steak sauce and Grey Poupon Grey Poupon is a Dijon mustard now made by Kraft Foods. Currently the best-selling Dijon-style mustard in the United States, it gained some notoriety from a late-80's commercial in which a Rolls Royce pulls up alongside another Rolls Royce, and a passenger in one (played by Ian mustard will join Kraft's Cheese, Meals and Enhancers segment, in its New Meals Division, based in Glenview, IL.
The Nabisco U.S. Foodservice U.S. Foodservice is one of the largest broadline foodservice distributor in the United States. The company distributes food and related products to over 250,000 customers, including restaurants, healthcare facilities, lodging establishments, cafeterias, schools and colleges. U.S. business will become part of the Kraft Food Services food services Hospital services A 24/7 department in a hospital that provides for the nutritional needs of inpatients–eg, those needing special diets, preparing meals and transporting them to the floor and, through the cafeteria, the hospital staff and Division in Glenview, and will be led by Steven Rudnitsky, 41, formerly President, Food Service at Nabisco, and now Executive Vice President, Kraft Foods, and President of the Kraft Food Services Division, reporting to Dave Johnson Dave Johnson may refer to:
Todd Brown Todd Eastman Brown (born June 17, 1972 in Watertown, New York) is an American actor, and singer. Biography
Todd Brown was born in Watertown, New York, and lived in Adams Center, New York until early 1981. , 51, previously Executive Vice President, Kraft Foods, and President of the Kraft Food Services Division, has been named Executive Vice President, Kraft Foods, and President of the E-Commerce Division, reporting to Paula Sneed, Group Vice President, Kraft Foods, and President of E-Commerce and Marketing Services. He will continue to serve on Kraft's Operating Committee.
In addition, Kraft Foods North America now will have responsibility for all Kraft and Nabisco businesses in Mexico and Puerto Rico. The Nabisco Mexico business will be integrated into Kraft Mexico, reporting to Joe Nahmias, Vice President of Kraft Foods, and General Manager of Kraft Mexico. Nahmias reports to Mary Kay Mary Kay is a brand of skin care and color cosmetics sold by Mary Kay Inc. Mary Kay World Headquarters is located in the Dallas suburb of Addison, Texas. Mary Kay Ash (d. November 22, 2001) founded Mary Kay Inc. on Friday, September 13, 1963. Haben, Group Vice President, Kraft Foods, and President, Kraft Cheese Division, Mexico and Puerto Rico. He serves on the company's Operating Committee. The Nabisco Puerto Rico business will become part of Kraft in Puerto Rico, which also reports to Haben.
Nabisco corporate support departments for the most part will become part of the appropriate Kraft Foods North America functions, including Corporate Affairs, E-Commerce, Finance, Human Resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , Information Systems, Legal, Marketing Services, Procurement, Quality, Research & Development, and Strategy.
Kraft Foods International
"We are very pleased with our finalized Kraft Foods International organization and the key appointments that will occur upon closing of the Nabisco acquisition," said Roger K. Deromedi, President and Chief Executive Officer of Kraft Foods International. "Along with Nabisco's outstanding brands, we have terrific Nabisco International employees joining Kraft Foods International and have created a well-balanced organization. I am confident that the integration of the businesses will go smoothly and quickly."
The new Kraft Foods International financial reporting segments will be the Europe, Middle East and Africa (EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. ) segment and the Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Asia Pacific (LAAP LAAP Louisiana Army Ammunition Plant
LAAP Longhorn Army Ammunition Plant ) segment.
Within these broad segments, Kraft Foods International will continue to organize itself into four regions, each with its own president. The EMEA segment includes two regions: Central, Eastern Europe Eastern Europe
The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. , Middle East and Africa (CEEMA CEEMA Central & Eastern Europe, Middle East & Africa ) region and the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the
European Community region (also including Norway and Switzerland). The LAAP segment includes two regions: Latin America region and Asia Pacific region.
Nabisco International businesses will be integrated into the corresponding Kraft Foods International regions. To move the integration process forward, Kraft Foods International announced key executive positions in Latin America and Asia Pacific, the two regions most impacted by the acquisition.
In Latin America, a region that virtually doubles in size with Nabisco, Joachim Krawczyk, Kraft Foods International President Latin America, and a 21-year veteran of the company, will assume further responsibility for the former Nabisco businesses within Latin America. The structure of Kraft Foods International's Latin America region, based in Rye Brook, N.Y., will continue with four areas, including Brazil, Southern Cone (Argentina, Chile, Uruguay, Paraguay), Andean Pact Andean Pact
A regional trade pact that includes Venezuela, Colombia, Ecuador, Peru, and Bolivia. (Venezuela, Colombia, Peru, Ecuador, Bolivia) and CARICAM (Central America and Caribbean).
The following individuals have been named to new positions, all reporting to Krawczyk:
- Gustavo Abelenda, 39, (formerly Vice President Food Brazil, Kraft Foods International) to Managing Director Kraft Foods Brazil, headquartered in Curitiba, Brazil - Gilberto Maldonado, 43, (formerly Nabisco's Regional President, Andean) to Area Director Andean Pact, headquartered in Caracas, Venezuela - Ramon de Mendiola, 36, (formerly General Manager Food, Central America, Kraft Foods International) to Area Director, CARICAM, headquartered in San Jose, Costa Rica
The Area Director, Southern Cone will be named in the near future.
Michael Polk, Kraft Foods International President Asia Pacific, based in Melbourne, Australia, will take on additional responsibility for the former Nabisco International businesses within this region upon closing. The Asia Pacific areas most directly affected are:
- The Greater China area, which consists of the People's
Republic of China, Hong Kong, Macau and Taiwan. David
Chan, Vice President & Area Director Greater China, Kraft
Foods International, will assume additional responsibility
for the combined Kraft Foods International and Nabisco
International in the area, based in Beijing, People's
Republic of China.
- Southeast Asia area, which includes businesses within the
Philippines, Indonesia, Thailand, Vietnam, Guam, Malaysia,
Brunei and elsewhere in greater Indo-China, will be headed
by Bienvenido (Pet) Bautista, 53, Vice President and Area
Director Southeast Asia, Kraft Foods International, who
will assume additional responsibility for the combined
Kraft and Nabisco businesses, based in Manila,
Hugh Roberts, Kraft Foods International President CEEMA, based in Vienna, Austria, will have responsibility for Nabisco's joint venture in the Republic of South Africa. Stuart Hancocks, 39, formerly with Nabisco, will continue as Managing Director, South Africa. Hancocks will report to Frank Rosa, Area Vice President Middle East, Africa and Turkey.
Finally, Ronnie Bell, Kraft Foods International President European Union, based in London, United Kingdom, will have oversight responsibility for the company's interest in the United Biscuits venture.
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