By Jessica DiNapoli
NEW YORK, Dec 16 (Reuters) - Incoming Kraft Heinz CEO Steve Cahillane, who previously led cereal maker Kellogg, said in an interview with Reuters that he "reserves the right" to improve the ketchup-maker's planned split, and would take criticism of the plan into account.
"We reserve the right to improve upon the plans, make them better, by studying it and having the discussions with all involved," said Cahillane, who oversaw the break-up of the Kellogg Co into separate cereals and snacks
businesses, both of which were later acquired.
Kraft Heinz announced its plan to split into a faster-growing condiments and spreads business and grocery unit earlier this fall. Investors, however, reacted poorly, with the company's shares down 12% from the day before its announcement in September.
Some Wall Street analysts and investors have questioned the choices the company made in splitting up its vast portfolio of brands - from Heinz ketchup to Jell-O to Oscar Mayer deli meat - between the two companies.
For example, some analysts have asked whether it made sense to include Kraft macaroni and cheese, which has seen its market share slip, in the condiments unit that Cahillane is set to lead after the separation later next year.
"I've heard the criticism, will listen to it and we'll make a determination," Cahillane said.
The 60-year-old executive, who has also held top roles at Coca-Cola, acknowledged that the company's stock market valuation lags rivals.
"(Kraft Heinz) is trading at a discount because it's not growing organically," he said. "The key to fixing your valuation and multiple expansion, is good organic growth through innovation."
Cahillane said he wants to get consumers to buy more Kraft Heinz products - and buy them more often - to drive organic growth.
He said French fries are the number-one use for ketchup but added that there are more opportunities to use the condiment. Kraft Heinz could also further expand the number of flavors of Philadelphia cream cheese, he said.
Cahillane will join the company on January 1, with current CEO Carlos Abrams-Rivera moving into an adviser role until March 6, Kraft Heinz said on Tuesday.
(Reporting by Jessica DiNapoli in New York, editing by Deepa Babington)
