• February 1, 2007

Kraft CEO Irene Rosenfeld will outline her strategy on Feb. 20 at the Consumer Analysts Group of New York conference in anticipation of the company's spin-off from Altria, which takes effect in March.

"While we can't predict what may or may not happen in the future, the spin-off itself does not have implications for any Kraft business or facility," a spokesperson said yesterday.

Last year, Rosenfeld realigned the management team to "build a Kraft that is bolder, more agile, more creative and more focused," she said at the time. It included the installation of Jeri B. Finard as executive vice president/CMO. Those moves were seen as a prelude to yesterday's anticipated announcement of the spin-off from its tobacco parent.

Kraft yesterday also announced that Louis Camilleri, Altria chairman/CEO, will step down as chairman of Kraft, but will continue to serve as a member of the company's board of directors, and that Rosenfeld will be elected chairman once the spin-off takes place.

The spin-off timing was announced as the food company reported that fourth-quarter revenues fell 3% to $9.37 billion from $9.66 billion, due in part to there being one less week in the quarter.

The company reported that net income fell 19% to $624 million, or 38 cents a share, from $773 million, or 46 cents a share, due to $491 million in restructuring charges--including ones in connection with its Tassimo coffee line and the sale of its cooked cereal line.

"While we've made progress in 2006 on both the top and the bottom lines, the overall turnaround is not broad-based enough and the foundation for sustainable top-tier performance is not yet in place. This is likely to continue into the first half of 2007 as we get the business on a path to predictable growth," said Rosenfeld. -- Nina M. Lentini