A shareholder vote in May will decide the name of Kraft Foods’ spin-off global snacks business, which will house UK operations including Cadbury.
The announcement came as Kraft, which is pushing ahead with plans to split into two companies, reported a rise in third-quarter earnings of 22% to $922m (£575.5m).
Sales for the three months to 30 September were $13.2bn, up 11.5% despite price hikes to offset higher costs.
“Our investments in marketing and new products continue to drive high quality growth and solid market shares,” said chief executive Irene Rosenfeld (pictured).
“We’ve accomplished this despite having taken significant price increases to offset record-high input costs.”
Rosenfield said the name of global snacks business, including Cadbury as well as brands such as Trident gum, Kraft cheese and Maxwell House, would be put to the vote in May. A separate US grocery business will retain the Kraft tag, she confirmed.
Kraft plans to announce leadership of each company by the end of the year, with the split expected to take place by the end of 2012.
“Together with substantial savings opportunities, we expect to deliver top-tier results in 2011 and remain on track to launch two industry-leading companies with strong operating momentum in the coming year,” Rosenfeld added.
Kraft insists split is good for brands (10 September 2011)
Was Nelson nemesis again in Kraft’s split? (6 August 2011)
Editor’s Comment: Kraft’s volte face is a massive vindication for Cadbury’s global focus (6 August 2011)
Kraft unveils dramatic plan to split in two (4 August 2011)