Irene Rosenfeld's departure, set for November, will cap a challenging 11-year tenure, first as the chief executive officer of Kraft Foods Group and then as head of the renamed Mondelez.
The company has tried to make healthier foods with simpler ingredients to keep with up with changing consumer tastes, but the efforts have not stemmed declining sales.
Mondelez's sales and earnings have been dropping consistently since Rosenfeld engineered the spinoff of Kraft's grocery business. Earnings of $1.66 billion last year were down by more than half from 2013 - the first full year as a snacks-focused company led by brands Oreo cookies and Triscuit and Ritz crackers.
The new CEO, Dirk Van de Put, 57, has a resume that includes stints at Coca Cola Co (KO.N) and candy maker Mars Inc prior to becoming CEO at privately held McCain. He will also become chairman of Mondelez after Rosenfeld retires next March.
Shareholder activists Bill Ackman of Pershing Square (IPO-PERS.L) and Nelson Pelz of Trian Fund Management LP had pushed for Rosenfeld, 64, to boost earnings. Peltz, who sought a merger with PepsiCo (PEP.N) after acquiring stakes in both companies in 2013, was named to the Mondelez board in 2014.
Just over a year ago, Hershey Co (HSY.N) spurned a $107-per-share takeover offer from Mondelez.
Shares of Mondelez were up 0.6 percent to $43.88 in choppy trading as traders digested the announcement. Also on Wednesday the company reported second-quarter revenue that scraped past estimates.
Mondelez cited Van de Put's experience in both developed and emerging markets, and his success in driving a sales increase of more than 50 percent as McCain's top executive.
"Dirk is a seasoned CEO who has grown both top and bottom line in challenging circumstances," Rosenfeld told CNBC in an interview.
Analysts with Sanford Bernstein in New York said in a research note that McCain will focus on sales growth. "The message is he is a growth guru," the note said.
source: Reuters
photo: Mondelez International
