New CEO Of Kraft Foods Named

Kraft Foods Inc. said Monday that Irene Rosenfeld has been named its new chief executive officer, replacing Roger Deromedi after a long period of sluggish results at the nation's largest food company.

Rosenfeld most recently was chairman and CEO of Frito-Lay, a division of PepsiCo.

Deromedi, a 28-year veteran of Kraft, had been sole CEO of the company since December 2003. He previously was co-CEO with Betsy Holden, who subsequently was removed and put in charge of global marketing.

The company said he mutually agreed with the board to leave to pursue other interests.

Deromedi had been under fire after an extensive restructuring had failed to produce the stronger sales and profits Wall Street expected.

The company, maker of Kraft cheese, Oreo cookies and DiGiorno pizza, is expected to be spun off soon by majority owner Altria Group Inc. Kraft Chairman Louis Camilleri, who also is Altria's CEO, indicated the CEO change was related to that impending action.

"While the fundamentals of the business continue to improve, we are confident that Irene will accelerate the execution of Kraft's growth strategy, build value for shareholders, and lead Kraft when it becomes a fully independent company," he said.

Kraft shares rose 24 cents to $31.18 in pre-market trading. After falling 21 percent last year, they have gained about 10 percent this year.