Summary
Kraft Foods Inc. (the registrant, which would later become Mondelez International) filed an 8-K report on April 11, 2008, to disclose changes to its operating structure and reportable business segments within its North America commercial unit, effective from the first quarter of 2008. These changes are part of a broader strategy to 'Rewire the Organization for Growth,' aiming to enhance P&L accountability at the business unit level and position resources closer to consumer decision-making. The filing also provides unaudited financial schedules detailing net revenues and segment operating income for 2005-2007, reconciling prior and new segment structures.
Key Highlights
- 1Kraft Foods Inc. is implementing a new operating structure focused on P&L accountability and decentralizing decision-making.
- 2Significant changes are being made to the reportable business segments within the North America commercial unit.
- 3U.S. Cheese is being established as a standalone operating segment to foster faster growth.
- 4The macaroni & cheese category and other dinner products are moving from U.S. Convenient Meals to U.S. Grocery to leverage operating synergies.
- 5Canada and North America Foodservice will be structured as a standalone reportable segment to address unique market needs and capture cross-border synergies.
- 6The new segment reporting will commence with the first quarter of 2008.
- 7The report includes unaudited financial schedules comparing net revenues and segment operating income under the old and new structures for 2005-2007.