A Closer Look at Kraft's Leadership

Updated

Kraft Foods Group (NAS: KRFT) is entering a new era, after its recent corporate break-up. Its brand power is indisputable, and its market share dominates; but Kraft's growth potential is limited, and its heavily commoditized categories face massive pressures. I've created a premium report on Kraft to help investors examine the company's future.

Below is an excerpt from the report, which highlights Kraft's leadership. It's just a taste of one section, but we hope you find it useful.

Tony Vernon is the CEO for Kraft Foods Group. In mid-2009, Vernon joined Kraft Foods as executive vice president and president of Kraft's North America division, where he led the company's $24 billion business in the U.S. and Canada. Prior to joining Kraft, Vernon spent 23 years at Johnson & Johnson, and three years in private equity.


Vernon navigated Kraft Foods' North America division amid tenuous economic circumstances. For much of his time at the original Kraft Foods, the company stock outperformed the S&P 500 and its performance peer group, which includes competitors Coca-Cola, PepsiCo, Kellogg, Nestle, and Hershey.

The Kraft Foods Group leadership team includes proven Kraft veterans with nearly 200 years of combined company experience. The leadership team also includes external hires from consumer packaged goods powerhouses PepsiCo, Procter & Gamble, and S.C. Johnson. The team boasts a combined 350 years of industry experience. In addition to its consumer packaged goods prowess, the expertise of Kraft's board of directors covers the international, retail, supply chain, and social media arenas.

A good portion of the debt of the original Kraft Foods was spun off to Kraft Foods Group. Regardless, Kraft should generate solid cash flows, which will be used to reinvest in the business, or boost the already-hefty dividend. Kraft currently rewards shareholders with a roughly 4.5% dividend yield, the highest among its food company peers, which pay closer to a 3% yield, on average. While consumer staples peers pay out roughly half their earnings in dividends, Kraft Foods Group's payout ratio stands around 80%.

Looking for more help?
That was just a small morsel of our new premium report on Kraft Foods Group. If you're trying to figure out whether the company is a buy or sell, the report is an indispensable resource for investors seeking more information. Also, the report comes with updated quarterly guidance so you'll stay in the know. To get started, simply click here.

The article A Closer Look at Kraft's Leadership originally appeared on Fool.com.

Fool contributor Nicole Seghetti owns shares of PepsiCo, Johnson & Johnson, and The Procter & Gamble Company. The Motley Fool owns shares of Johnson & Johnson and PepsiCo. Motley Fool newsletter services recommend Johnson & Johnson, The Coca-Cola Company, PepsiCo, and The Procter & Gamble Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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