Talk to The Big Cheese

By Kristin Kloberdanz

The name Kraft conjures images of cream-cheese blocks and gooey macaroni. TIME's KRISTIN KLOBERDANZ sat down with CEO Roger Deromedi to discuss diet fads and what food companies should do about America's obesity problem.

TIME: Some food-industry organizations are challenging the idea that obesity is an issue. Do you agree?

ROGER DEROMEDI: We're convinced that health and wellness are very important issues for our consumers. Sadly, two-thirds of Americans are overweight or obese. It's incumbent on all of us in the food industry to keep working on education and providing solutions. I look at the data and sense a broader awareness of nutrition. I just wish the numbers would show that people are improving their diets.

TIME: What is Kraft doing to help?

R.D.: We have a new program called Sensible Solution, where products that meet strict dietary guidelines will get a flag. Our goal over time is to have more of our products have that Sensible Solution flag.

TIME: A large part of your business is still selling essentially unhealthy snack food.

R.D.: What you'll find us doing is not necessarily eliminating those products but continually improving them by changing their composition, like adding whole grains. We also have a major program to reduce trans-fatty acids across our entire product line.

TIME: Philip Morris USA, a division of your largest shareholder, Altria, has supported the organization that is downplaying the risks of obesity.

R.D.: Kraft does not provide financial support to the group. On food issues, we think the right approach for Kraft is to do what we can to proactively address consumers' concerns.

TIME: How much of a challenge has the low-carb craze been for Kraft?

R.D.: Americans are always trying different diets to try to solve their nutrition needs. We have gone through periods when it was avoid sugar, avoid fat, avoid carbs. With a portfolio as large as ours, avoiding carbs had some pluses. It helped our cheese business; it helped our bacon and meat business. But it hurt other businesses, like our cookies and crackers.

TIME: You're rolling out a line of South Beach Diet products this spring.

R.D.: What appealed to us is that it's not a low-carb diet, although many associate it with low carb. It's a balanced diet of the right carbs, the right fats and lean sources of protein. I started in December and lost 12 lbs. in two months.

TIME: In the U.S., you've changed some of your ads toward children between the ages of 6 and 11 to emphasize nutrition.

R.D.: What we're doing is shifting the mix of the products we advertise to children 6 to 11 to those that meet our Sensible Solution criteria. So we're not just doing nutritional messages. We think that's the way to do it--to encourage children to make the right choices.

TIME: What does your family eat?

R.D.: We have teenage children, and they all have various tastes. But we have been enjoying the South Beach Diet. My 11-year-old son loves the chicken wraps. They drink the Crystal Light Sunrise. They're a great test market.

TIME: Do you have a guilty-pleasure splurge food?

R.D.: Cote d'Or chocolate. Food should be a pleasure. One of our goals is to combine the joy of food with good nutrition. There's room for all foods in a diet.