Mr. Powell, 53 years old, who most recently served as president and chief operating officer, helped to develop the Minneapolis company's five long-term growth strategies, which include broadening the channels through which the company sells its products, expanding overseas and bringing more innovation to the business.

Mr. Sanger, 61, will remain chairman through the current fiscal year, which ends in May.

Mr. Powell isn't expected to deviate from the growth plans he had a hand in shaping. "I've worked closely with Steve on those things for the last three years," Mr. Powell said in an interview.

Under his watch, the company has started selling more of its products outside traditional supermarkets. Half of the sales of its Cascadian Farm and Muir Glen organic brands in fiscal 2007 came from natural and organic specialty stores, and a new line of Pillsbury miniature desserts soon will be carried in convenience stores.

General Mills also has been seeking new ways to grow internationally, both by increasing the reach of its cereals around the globe and by bringing a Chinese brand called Wanchai Ferry to the U.S. And the company has been pushing its brand managers to develop innovative new products, such as Fizzix, a new carbonated yogurt, and a new type of chocolate Chex cereal.

During his 28-year career at General Mills, Mr. Powell has served as president of the Yoplait yogurt division and of Big G cereals; chief executive of Cereal Partners Worldwide, a Switzerland-based joint venture with Nestlé SA; and chief operating officer of the company's U.S. retail division. Mr. Powell, who was named president and chief operating officer in June 2006, has a bachelor's degree in biology from Harvard and an M.B.A. from Stanford.

Mr. Powell says he wants to increase the company's efforts to market to Hispanic and African-American consumers. "I think we're going to accelerate our marketing activity there," he says.

Mr. Sanger had been CEO since May 1995, an unusually long tenure in the packaged-food industry. During that time, he steered the company through some tough times, including the difficult integration of the 2001 Pillsbury acquisition.

General Mills has enjoyed more success lately. The company reported earnings of $288.9 million, or 81 cents a share, for the quarter ended Aug. 26, up from $266.9 million, or 74 cents a share, a year ago. Revenue rose 7% to $3.07 billion. General Mills shares fell 61 cents, or 1%, to $57.88 in 4 p.m. New York Stock Exchange composite trading.

Coca-Cola selects Unilever executive as head of innovation

Coca-Cola has appointed a former Unilever marketer, Chad Scales, to the new role of vice-president of brand marketing innovation. He takes over the role this week.

Scales’ appointment aims to build on Coke’s new product development in non-core categories as it looks to move away from carbonated drinks. He will be responsible for developing the company into areas such as teas, coffees
as well as looking at new packaging.

Scales, who was previously vice-president of food division at Unilever North America, will report to Mark Mathieu, senior vice president of brand marketing. Mathieu reports into Coke’s chief marketing and commercial officer Joseph Tripodi, who was appointed last month. He replaced Mary Minnick, who left to join private equity company Lion Capital.

Scales will head a team including Gopal Krishnan, who works in production innovation, Mike Shepherd, who works across packaging and equipment innovation, and David Fielding, who heads the teas and coffees categories.

Coca-Cola, in recent years, has attempted to diversify away from carbonated drinks. It has undertaken a joint venture with NestlÈ called Beverage Partners Worldwide (BPW), which focuses on black and green tea.
The pair are understood to be working on a range of functional drinks, including a tea-based ready-to-drink product called Lumae (MW March 15, 2007).

Peifer will oversee the company's cash management, corporate finance, risk management and investment management functions. She joined General Mills in 1988 and has served as vice president of investment finance since 2002.

Shares of the company added 30 cents to $57.97 in midday trading.

Barry Callebaut sells Brach’s to Farley’s & Sathers

Swiss chocolate maker Barry Callebaut said on Monday it would sell its underperforming U.S. unit Brach's Candy to Farley's & Sathers Candy Co. Inc, sending its shares higher.

The sale will include all of the business and all assets of Brach's and its affiliates, Barry Callebaut said, but did not disclose any financial details of the sale of the unit to the U.S. candy maker.

By 0856 GMT, shares in the group, which have gained some 36 percent so far this year, had risen over 1 percent to 833.50 Swiss francs ($702.2), outperforming weaker markets.

"We think the Brach's disposal is a very positive move, as it will greatly improve the group and consumer division margins," said Vontobel analyst Rene Weber.

Weber also estimated that Barry Callebaut had not made a gain on the sale and estimated that Brach's was worth some 30 million francs in its books.

"The purchase price will be no higher than that, meaning no extraordinary gain for the company," Weber said.

The company declined to comment.

The deal is expected to close by the end of November at the latest, the group said. 

Brach's, whose products include fudge nut goodies and peanut butter clusters, has struggled with rising competition and a stalling candy market in the U.S.

Brach's has annual gross sales of around $270 million, with sugar candy making up around 75 percent of revenue and chocolate products accounting for around 25 percent.

ConAgra to Acquire Lincoln Snacks

ConAgra Foods Inc., the maker of Crunch 'n Munch, has agreed to buy the maker of the competing candy-coated popcorn snack Fiddle Faddle.

ConAgra said Thursday that it will buy privately held Lincoln Snacks, which makes Fiddle Faddle, Poppycock and an assortment of private label products. Terms of the deal were not released.

Lincoln Snacks, which has been owned by Chicago-based Ubiquity Brands since 2004, generates about $45 million in annual sales and employs 114 people in Lincoln, Neb.

ConAgra Chief Executive Gary Rodkin said the acquisition of Lincoln Snacks will help the company meet consumer demand for snacks.

"We plan to grow Poppycock and Fiddle Faddle through our marketing expertise and operating infrastructure, and we're pleased to welcome the brands into the ConAgra Foods portfolio," Rodkin said.

ConAgra already sells a number of snack food brands, including Slim Jim, David sunflower seeds, and Orville Redenbacher popcorn.

Over the past 18 months ConAgra has sold off a number of well-known but less profitable brands such as Butterball, Cook's, Louis Kemp, Armour, Decker, Ready Crisp and Margherita.

Dean Foods appoints new chief marketing officer

US-based food and beverage manufacturer Dean Foods Company has appointed Rick Zuroweste as chief marketing officer of its dairy group, effective September 17.

Reporting to Gregg Engles, chairman and CEO, he will provide strategic leadership for the dairy group's portfolio of brands and lead the development of new product offerings within that portfolio.

Mr Zuroweste has over 23 years of experience in the food and beverage industry. For the past nine years, he worked with The Coca-Cola Company in progressive marketing roles, and held the position of group director for the Coca-Cola brands. While at Coca-Cola, Mr Zuroweste also led marketing and innovation for the Dasani water brand and Minute Maid's Shelf Stable Juices and Orange Juice. Prior to joining Coca-Cola, he held positions of increasing responsibility with Sara Lee's Hillshire Farm brand, Ralston Purina's Children's Foods Group and Continental Baking, as well as Hasbro's Toy Group.

Mr Engles said: "As a seasoned marketing executive in the food industry, Rick brings a wealth of experience and deep expertise to the dairy group. As we begin to coordinate and bring consistency to our marketing efforts across the country, Rick's record of success in the beverage industry will serve us well."

Avon Appoints New President

Avon Products, Inc. announced several management changes—including a new president.

Elizabeth Smith, formerly executive vice president and president, North America and Global Marketing, was appointed president, Avon Products, Inc. In addition to retaining her current responsibilities for North America operations and Global Brand Marketing, Ms. Smith will now also oversee Global Supply Chain and Global Information Technology, giving her full, end-to-end leadership for the company's product-to-market processes, infrastructure and systems. She will maintain her current reporting relationship to Andrea Jung, Avon's chairman and chief executive officer.

In light of Ms. Smith's expanded responsibilities, the company said it has named Andrea Slater, formerly the president of Avon U.K., to the position of president, Avon U.S., reporting to Ms. Smith.

The company also announced that Charles Cramb, formerly executive vice president, Finance and Technology, and chief financial officer, has been appointed to the position of vice chairman, Chief Finance and Strategy Officer.

Altria to spin off Philip Morris International

Altria Group Inc., the world's largest tobacco company, plans to spin off Philip Morris International after being pressured by investors who want faster overseas growth and less risk from US smokers' lawsuits.

A final decision on the timing will be disclosed at a board meeting Jan. 30, Altria said yesterday. The company also boosted its dividend 8.7 percent to 75 cents a share.

A spinoff would complete the breakup of the former Philip Morris Cos., which traces its roots back to a London tobacconist in 1847, and leave it with the US cigarette operations. Chief executive Louis Camilleri in March spun off Altria's 89 percent stake in Kraft Foods Inc., the world's second-largest food company.

"Ultimately it is the right move," said Thomas Russo, a partner at Gardner Russo & Gardner in Lancaster, Pa. He expects the international and US companies to initiate a "generous share buyback program and pay a substantial dividend."

Camilleri, 52, would take over as chairman and CEO of Switzerland-based Philip Morris International. Michael Szymanczyk chief of Philip Morris USA, would become Altria's chairman and CEO.

"The opportunity here is to enhance our growth rate," Camilleri told analysts on a conference call. Altria also has a stake in brewer SABMiller PLC.

A separation of the two units will allow for savings of at least $250 million, including the closure of Altria's New York headquarters, Camilleri said.

About two-thirds of Altria's 600 New York jobs will be cut, he said. Some employees will be offered transfers to the Richmond headquarters of Philip Morris USA.

The US unit, which accounts for one of every two cigarettes sold in the United States, is dwarfed by Philip Morris International. The overseas division accounts for two-thirds of profit and three-fourths of revenue, and its shipments are rising while US volumes decline.

The decision on the spinoff will be based on several factors, including a tax ruling from the Internal Revenue Service and the execution of several intercompany agreements, the cigarette maker said.

Camilleri bowed to shareholders who favored the separation of Altria's international unit from legal risk and falling cigarette consumption in the United States.

Kraft Foods appoints new CFO

Kraft Foods has appointed Timothy McLevish as executive vice president and CFO, effective October 1, 2007. Mr McLevish succeeds James Dollive, who will be retiring after a 29-year career with Kraft.

Mr McLevish joins Kraft from Ingersoll-Rand Company, where he has been senior vice president and CFO since 2002.

Irene Rosenfeld, Kraft chairman and CEO, said: "Tim is an exceptional executive who combines a distinguished career in finance, accounting and public company governance with experience in line management, strategic planning and mergers and acquisitions. He is a seasoned CFO, with an impressive track record of leading financial operations for global companies with diversified portfolios. Tim's extensive experience in driving outstanding shareholder returns and in communicating with investors will be invaluable as we capitalize on our opportunities as an independent company and restore Kraft to reliable growth."