Kraft Foods CEO Says Strong Growth Ahead
Irene Rosenfeld, chief executive officer of Kraft Foods, told CNBC’s “Squawk on the Street” that she expects strong future growth from the newly independent company.
“I am confident that we’ll be able to generate accelerated growth,” Rosenfeld said Monday. “We’re focused on reframing our categories to make them more contemporary, and to provide consumers with the food they need and love.”
On March 31, Altria Group spun off its interest in Kraft, or about 89% of Kraft’s outstanding stock, to Altria shareholders of record on March 16. Altria shareholders received 0.69 of a share of Kraft for each common share of Altria held.
“There’s no question that we have a solid financial position – good cash flows, attractive margins – and (the spinoff ) just gives us much more flexibility to make use of those assets,” Rosenfeld said. “As we think about the opportunity to be able to take on more debt, to be able to buy back our shares, to be able to use our stock as currency, not to mention the benefit it has in simplifying our overall processes.”
She said Kraft plans to invest in sales and marketing support.
“Some of our investment will be going to research and development,” Rosenfeld said.