One month before Altria Group spins off Kraft Foods, Irene Rosenfeld, Kraft Foods' chief executive officer, has revealed a restructuring plan for the company that focuses on product improvements and cost cutting. The goal is to recharge lagging sales and profits.
The four-part plan addresses future growth, the need to make categories more relevant to consumers, boost Kraft's sales capabilities and cut costs.
The company has already closed factories and cut jobs. Rosenfeld plans to invest $300 million to $400 million on marketing, research and development and other programs. She expects a 3 percent to 4 percent increase in organic sales this year. Tapping that and restructuring costs are expected to generate the capital for Kraft's marketing and product-development campaigns.
"By 2009, we'll hit our stride," Rosenfeld says. "We'll fully realize the financial benefits of our investments and deliver our long-term targets of at least 4 percent net revenue growth and 7 percent to 9 percent earnings per share growth."
Source: Kraft Foods, Meatingplace.com