- Kraft Foods Group Inc. CEO Tony Vernon addressed concerns this week as the company announced second-quarter earnings results, which were highlighted by $4.7 billion in revenue (just under Wall Street's $4.82 billion expectation) and earnings that were up to $829 million ($1.38 per share) compared to $603 million ($1.02 per share) from the same period one year ago.
- The company cited reduced prices, low cold cut and salad dressing sales and a lack of advertising as reasons for less-than-optimal performance.
- "The bottom line is this, we are not yet firing on all cylinders," Vernon told analysts, promising big campaigns on the horizon for Kraft's Planters and Jell-O brands, which he hopes to see get sales boosts in the months ahead.
Since parting with Mondelez International Inc. last year, Kraft has had a tough time repositioning itself without snack products such as Oreo. Meanwhile, the salad dressing and Oscar Mayer meat problems will have to be addressed.
It's worth noting that Kraft's marketing efforts haven't been completely fruitless in 2013, though. The company's Father's Day "Say it with bacon" promotion, for instance, will probably be one of the most memorable concoctions of the year.