After a 36-year career in the food industry with companies like Kraft Foods, Mondelez, and PepsiCo’s Frito-Lay division, Irene Rosenfeld is retiring.
A CEO for the company for 11 years, first of Kraft Foods and then Mondelez after Kraft Foods was split into two, Rosenfeld created what is arguably one of the world’s greatest snack food companies. Mondelez — which has a market value of $63 billion and boosts annual sale os $26 billion — is the company responsible for many pantry staples such as Oreos, Triscuits, Ritz crackers, and Fig Newtons. The company also has dozens of biscuit and chocolate brands that are sold across the globe.
Rosenfeld is one of a handful of females at the helm of a Fortune 500 company. During her career, she worked to overhaul and expand its supply chain network to reach beyond Europe and the United States to target growing Asian and Latin American markets.
Along the way, after becoming CEO of Kraft Food in 2006, she acquired Cadbury, the British chocolatier, through a hostile takeover in 2010. In 2012, Rosenfeld split Kraft Foods into two companies and created Mondelez — whose focus is on global snacks while Kraft aligned itself with savory staples such as its famous macaroni and cheese in the blue box and Velveeta cheese.
Always an advocate for women in the workplace, Rosenfeld encouraged them to maintain a zero-tolerance policy when it comes to sexual harassment. Though she acknowledged that it’s easy to get focused on realizing their ambitions, Rosenfeld reminded women that they also need to stay true to themselves. Fourteen of her former employees — including Hershey’s Michele Buck and Campbell Soup’s Denise Morrison — have struck out on their own to become CEOs of major companies.
After graduating from Cornell University with advanced degrees in statistics, business, and marketing, Rosenfeld first worked for an advertising company before joining General Foods in 1981. In 1985, Philip Morris, the cigarette maker, which also owned Kraft at that point, acquired General Foods whose focus was on items such as Maxwell House coffee and Oscar Mayer meats. Rosenfeld’s responsibilities continued to expand to include beverages, consumer research, and desserts.
By the time Kraft Foods went publi in 2001, she was running the operations group and the Canadian business. In 2002, her responsibilities expanded to include all of North America as well. After 23 years of working at the same company, Rosenfeld left Kraft in 2004 to run PepsiCo’s Frito-Lay division. Though she would have stayed at that company for longer, Kraft Foods offered her the chief executive job in 2006.
During her long career, Rosenfeld learned valuable lessons including the importance of innovating and investing. This point was driven home when Philip Morris was paying huge sums to settle health-related lawsuits. The company was pushing the food-focused arm of the business to deliver the cash it needed to pay out. Another important lesson Rosenfeld came to understand is that people like to snack which is driven by impulse. The more visible her company’s products are, the more it would sell.
As the United States — and, indeed, the world — became more focused on healthy eating, Rosenfeld lead Mondelez to innovate in ways that delivered options that are fresher and healthier. The company removed all the ingredients from Triscuits that are genetically modified, provided resealable packages for their iconic Oreo cookies, and introduced healthier brands like a new biscuit, Vea.
Of her legacy, Rosenfeld notes that she was always focused on making the bold moves that would position the company well within the changing food industry. She didn’t take the easy way out. Instead, she tackled with the British when taking over Cadbury and shrugged off Warren Buffet’s disapproval of the acquisition. In spite of the roadblocks, Rosenfeld was successful in the $20 billion deal. Though Mr. Buffet was concerned about Kraft Foods becoming diluted, the stock of Modelez has risen over 50 percent over the last five years.
Rosenfeld made about $231 million during her years as CEO of Kraft Foods. This doesn’t include her compensation prior to becoming the head of the company in 2006 though. She’ll also received a retirement package that will likely be worth much more as well.
Regards,
Ethan Warrick
Editor
Wealth Authority
