KEY POINTS:
Fonterra senior executive Sanjay Khosla, who resigned as brands business manager at Christmas, has joined one of the company's biggest rivals in the United States.
Kraft Foods Inc has named Mr Khosla -- whose resignation from Fonterra technically will only take effect at the end of January -- as new president of its international commercial division, Forbes Magazine reported.
Kraft shares rose US28c to close at US$35.91 on the New York Stock Exchange on yesterday's announcement.
Mr Khosla replaces Hugh Roberts, who announced his planned retirement in September.
Mr Roberts received a remuneration package with cash payments of US$1.95 million ($2.9 million) in the year to December 2005, including a bonus of US$340,000.
Kraft Foods, based in Northfield, Illinois, is not only a rival of Fonterra but a major customer for its milkpowders and dairy ingredients.
Kraft chief executive Irene Rosenfeld said yesterday that Mr Khosla's appointment was effective immediately.
"Sanjay will be a dynamic leader of our international business ... he has gained extensive global experience and deep insights in consumer marketing."
Mr Khosla said in a statement that he was thrilled to join the Kraft team and was looking forward "to taking full advantage of the many opportunities before us in our International business".
Before joining Fonterra, Mr Khosla had a 27-year career with Unilever in India, London and Europe.
At Kraft Mr Khosla will be responsible for the company's US$11 billion business outside of North America.
It is understood Mr Khosla told Fonterra he was going to the United States to be with family members.
In December, Fonterra chief executive Andrew Ferrier said that though the company was "naturally disappointed" to be losing someone of Mr Khosla's experience, it respected his wishes to be closer to his family.
Mr Khosla was recruited by Fonterra to pull together the consumer business, which had recorded a $945 million slump in revenue in the year to May 31, 2004, to earnings of $3.8 billion.
This week Mr Khosla told the New Zealand Herald that Fonterra Brands' profits were as much as 30 per cent higher compared to the previous year.
He said the consumer products business was responsible for about a third of the value-added contribution to the payout to farmers.
Previously Mr Khosla admitted he had never heard of Fonterra when recruiters knocked on his door in Holland.
- NZPA
