"When we announced our decision to create two world-class
companies last August, we said both would be leaner, more
competitive organizations," Kraft Chairman-CEO Irene Rosenfeld said
in a statement. "For the past year, the North American team has
been working to streamline operations to deliver sustainable
top-tier performance and continue to invest in our iconic
brands."
Kraft will cut its U.S. management offices from four locations
to two once the North American grocery company is spun off later
this year.
Kraft 's Glenview, Ill. management center will close by the end
of 2013, and Kraft 's beverage business in Tarrytown, N.Y., and its
Planters unit in East Hanover, N.J., will move to the Chicago area
by December 2012. Employees of the two East Coast units will have
the option to transfer to the future company headquarters.
The headquarters of the global snack company will be based in
the Chicago area at a site under consideration, the company said in
the statement. The North American regional headquarters for the
global snack company will be in the East Hanover campus.
"Having the majority of our business units together in one
location will provide greater development opportunities for our
people and will help us continue building our brands more
efficiently and collaboratively," Tony Vernon, president of Kraft
Foods North America and CEO of the future grocery company, said in
a statement.
Kraft 's snack business will continue to use a direct store
delivery model. The North American grocery company will contract
local sales to Acosta Sales & Marketing for grocery and mass
retail channels. Crossmark will continue to serve the grocery
company in convenience stores.
Most of the U.S. retail sales employees will move to the North
American region of the global snack company. Kraft expects to have
both sales organizations complete by April 1.
"Our plan for a more nimble company, combined with the current
economic and competitive pressures, led us to this point," Mr.
Vernon said in the statement. "Taking the necessary steps now will
enable us to continue investing in our beloved brands to drive
growth."
Kate MacArthur is a reporter with Crain's
Chicago Business.
Contributing: E.J. Schultz