Great ResignationInflationSupply ChainsLeadership

Kraft Foods reports loss, says CFO and other executives to leave

February 12, 2015, 10:40 PM UTC
Kraft Challenges Starbucks' Attempt To End Agreement
Kraft Foods Inc. cheese products sit on a shelf at a grocery store in New York, U.S., on Tuesday, Nov. 30, 2010. Kraft Foods Inc. said it would challenge Starbucks Corp.'s attempt to end a retail grocery coffee-distribution agreement between the two companies and has initiated an arbitration proceeding. Photographer: Michael Nagle/Bloomberg via Getty Images
Photograph by Michael Nagle — Bloomberg/Getty Images

(Reuters) – Kraft Foods said its chief financial officer and two other senior executives would leave the company, and the maker of Velveeta cheese and Oscar Mayer meats reported a quarterly loss due to a charge related to its pension plan.

Kraft said the shakeup, which includes the creation of a “vice president of growth initiatives”, was aimed at accelerating the pace of change at the company.

Kraft’s shares (KRFT) were down 2.5 percent at $64.80 in extended trading on Thursday.

Chief Financial Officer Teri List-Stoll, Chief Marketing Officer Deanie Elsner and Chuck Davis, executive vice president of research and development and quality and innovation, will leave the company.

Kraft said the finance division would report to Chief Executive John Cahill, who took over in December, until a CFO was appointed.

The company has faced sluggish demand for its packaged foods in the United States at a time of high commodity costs.

Chris Kempczinski, who currently leads the company’s Canada unit, will assume an expanded role as executive vice president of growth initiatives and president of international operations.

He will work on innovation and strategy that will include mergers and acquisitions, Kraft said.

George Zoghbi, previously vice chairman of operations, R&D, sales and strategy, was appointed chief operating officer.

List-Stoll, who joined Kraft in September 2013, will stay on as a senior adviser.

Kraft reported a net loss of $398 million, or 68 cents per share, for the fourth quarter ended Dec. 27, compared with a profit of $931 million, or $1.54 per share a year earlier.

The company took a charge of $1.36 billion related to post-employment benefit plans, mainly due to a combination of lower discount rates and updated mortality assumptions.

Revenue rose 2.2 percent to $4.69 billion.

(This story was updated with additional information)