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By ABIGAIL KLINGBEIL
EAST HANOVER, N.J. - Executives of Kraft Foods Inc.,
which laid off about 90 Westchester County employees in the first quarter
as part of a global reorganization, focused on the company's plans to
turn around its flagging business during Kraft's annual meeting yesterday.
Kraft Chairman Louis Camilleri, who led the meeting, said the company
was not satisfied with its 2003 results. Sales volume increased just
0.7 percent, and Kraft lost market share in several categories, including
cheese, cold cuts, crackers and coffee.
Camilleri stood in for Kraft Chief Executive Officer Roger Deromedi,
who is recovering from a viral infection. He is expected to return to
work May 10, Camilleri said.
The annual meeting was held at the company's Robert M. Schaeberle Technology
Center in East Hanover, N.J.
Kraft Foods, maker of Tang, Chips Ahoy!, Lunchables and numerous other
food brands, is based in Northfield, Ill. When the layoffs and moves
are complete, Kraft will employ about 900 people in Westchester County,
where its beverage, coffee, cereals and desserts divisions are based.
Kraft announced in January that as part of a three-year company-wide
restructuring, it would close its Rye Brook operations, and sell a 54-acre
campus there, which includes a 560,000-square-foot building at 800 Westchester
Ave. and a 65,000-square-foot building at 760 Westchester Ave.
Over the next three years, Kraft plans to close 20 of its 197 manufacturing
plants and reduce its work force by about 6,000 people, or about 6 percent
of its total employee base, through layoffs and attrition.
It also is working to revitalize its brands. Kraft plans to spend about
$500 million to $600 million more this year on marketing and product
price reductions.
Dave Johnson, president of Kraft North America Commercial, outlined
several new brand extensions, including DiGiorno Thin Crispy Crust Pizza,
which Kraft will begin selling next month.
"We're entering a new segment - thin crust - with the
intention of grabbing a bigger slice of the $20 billion carryout delivery
market," Johnson said.
Kraft also is focusing on making many of its products healthier. "This
year, our newly acquired Back to Nature line will grow to include cookies,
crackers and organic cheeses, all with no artificial flavors, colors
or preservatives and zero grams of trans fat," Johnson said.
During the question and answer period, many of the audience questions
focused on genetically engineered food. Kraft uses genetically engineered
ingredients in many of its products in the United States, but does not
for its products sold in European Union countries.
"The issues we're concerned about all investors will be concerned
about eventually," said Michael Leone, vice president of Green
Century Capital Management in Boston.
Camilleri stressed several times during the question and answer session
that consumer safety is paramount to Kraft.
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