Reuters | The head of Kraft Foods said she was not concerned by top investor Warren Buffett’s decision to cut his stake in the U.S. food group after criticizing her acquisition of British chocolatier Cadbury.
The integration of Cadbury is on track and benefits from the $18.4 billion deal will become clear to shareholders, Chairman and Chief Executive Irene Rosenfeld told Reuters on Friday.
“I will say that for Mr. Buffett as well as for all our shareholders, in the coming months we will continue to deliver against the targets we have laid for ourselves. These results will speak for themselves,” Rosenfeld said.
I criticize their acquisition of Cadbury as well. It was very apparent that it was a bid to temporarily shore up their bottom line.
The profit they are getting out of Cadbury is by making cuts as they already have started to with the marketing division. It will eventually ruin the quality of the product as they start looking at materials costs. When the profit fails to support the high overhead at the top echelons of Kraft, they will sell it off and move on to takeover some other profitable food business and proceed to milk it dry.
Short term results are meaningless for anyone in the market for the long haul. Months? Bah. And in years, Kraft will continue to run an over the long term unprofitable business model by not giving first priority to the quality of their products.
This is headline news?
Maybe if “Kraft CEO has hissyfit and falls to floor kicking and screaming” happened. But the dissed CEO having a non-reaction? Please. Is this a (really, really) really slow news day?