Food Processing - June 2008 - (Page 36)

NEW CEOs calls colleagues “mates,” often breaks into an easy laugh and seems surprised at how far he’s gone professionally, reports Business Week. With sales of almost $12 billion in 2007, Kellogg Co. is the world’s leading producer of cereal and a leading producer of many convenience foods, including cookies, crackers, toaster pastries and cereal bars. Brands include Kellogg’s, Keebler, Pop-Tarts, Nutri-Grain, Morningstar Farms, Famous Amos and Kashi. Its brands are marketed in more than 180 countries around the world. Mackay’s challenges are many. High commodity prices translate to higher prices for cereal. Grab-and-go options are becoming more popular than cereal in a bowl. ere has been increasing consumer and government pressure over sugar-laden cereals being advertised to kids. In June last year, the company announced new initiatives in how it markets to children under 12: new front-of-pack nutrition labeling and new guidelines in nutrition. e Kellogg Global Nutrient Criteria of 200 calories per serving, 2g of saturated fat, 0g of trans fat, 230 mg of sodium and 12g of sugar is the standard. “ e initiatives set a new standard of responsibility and are consistent with our 100-plus year heritage, further strengthening our commitment to helping consumers make informed food choices,” said Mackay. “Around the world, Kellogg continues to play an active role in helping consumers successfully manage both sides of the calories in/ calories out equation through product choices, in nutrition education, community programs and partnerships promoting the importance of a balanced diet and physical activity.” Irene Rosenfeld, Kraft Foods Inc. in 2001. en she left to be chairman/CEO of Frito-Lay, a division of PepsiCo. Returning as CEO in June 2006, she reportedly spent the ﬁrst month talking to employees about what worked and what didn’t, then shook up the management team. Advertising Age reported she sent a memo to employees indicating her belief that the company was too bureaucratic, confused and lacked clear lines of responsibility. At a time when many called for cost-cutting, she informed Wall Street analysts that Kraft would spend an additional $300-400 million on advertising and marketing to better connect its brands with consumers. “We will be telling the consumer that Kraft is back,” she said. Last month, Rosenfeld told shareholders that Kraft will raise prices this year to oﬀset increasing commodity costs, adding that the company needs to protect its margins and proﬁts, which dropped last year due to the soaring costs of wheat, dairy and other commodities. While that could drive consumers to private label, she also has promised more money to market its portfolio of iconic brands, including nine with revenues exceeding $1 billion, which are available in more than 150 countries. With some 80 new or improved products in the pipeline, Kraft seems to be cookin’ again. Kraft’s “betterfor-you” products are growing two to three times faster than others, and healthy initiatives are in place in 30 percent of its product lines (beverages, snacks, cheese, grocery and convenience), a good place to be in 2008. Kendall Powell, General Mills Inc. IRENE ROSENFELD Now that it has kicked the Altria tobacco habit, Kraft Foods Inc., once considered a stodgy and oversized company, is delivering stellar results. In the ﬁrst quarter of this year, revenues increased 20.8 percent to $10.4 billion. In 2007, Kraft delivered its strongest revenue growth since 2001, the result of investing in new products and its most successful brands, and beat Wall Street forecasts. “2008 is oﬀ to an excellent start and we expect our results to continue to strengthen as the year progresses,” said Chairman/CEO Irene Rosenfeld, who has been presiding over the turnaround. “Our investments in product quality, marketing and innovation are leading to better price realization, stronger top-line results and sequential improvement in margins from the fourth quarter of 2007. While input costs remain high, I am conﬁdent that our ongoing programs to lower overhead costs and invest in our brands will enable us to deliver our targeted earnings in 2008 and beyond.” Like Mackay, Rosenfeld left Kraft, Northﬁeld, Ill., for several years. She began her career with General Foods in 1981 and spent more than 20 years with Kraft, advancing in a variety of leadership roles. She is credited with leading the successful integration of the Nabisco acquisition, and the restructuring and turnaround of a number of key businesses. She served on the senior team that led Kraft’s IPO 36 • FOOD PROCESSING JUNE 2008 Many of the top CPG companies are promoting their CEOs from within, a strategy that was out of favor in the past decade. After a 28-year career with Minneapolis-based General Mills, Kendall Powell was elected CEO in September 2007, a ﬁne reward for his years of service and worldwide expertise in GM brands across the board. Having earned a Harvard degree in biology and a Stanford MBA, Powell joined General Mills in 1979 as a marketing assistant and held a series of assignments: marketing director for Cereal Partners UK (a General Mills/Nestle joint venture) in 1990; president of the Yoplait Division 1996-1997; president of Big G Cereals 1997-1999; CEO of Cereal Partners Worldwide 1999-2004. He was named an executive vice president of General Mills in 2004, with responsibility for the company’s Meals, Pillsbury USA, Baking Products and Bakeries & Foodservice businesses; and was appointed COO-U.S. Retail in May 2005. He served as president and COO of General Mills from June 2006 until his election as CEO last September. He added the chairman title this May, when Stephen Sanger retired after a 34-year career with the company. While General Mills, too, raised prices in the past year in response to higher commodity prices, consumers aren’t giving up their Big G cereals for less expensive private labels. Perhaps that’s partly because of the Brand Champions initiative, in place since 2003, which imFOODPROCESSING.COM KENDALL POWELL http://FOODPROCESSING.COM

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Food Processing - June 2008 Editor's Plate NewsBites Show Report The Trends Rollout Food Biz Kids Consumer Taste Test A Bevy of New CEOs Ingredients Packaging Plant Operations MRO Q&A New Supplier Products Toops Scoops Contents

Food Processing - June 2008

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