Kraft, which was spun off last year from Mondelez International, now expects Q4 2012 net revenue to be 10.7% lower than the prior year.
However, it raised its forecast for full-year 2013 earnings to $2.75 per share, up from $2.60.
Speaking to analysts on a conference call this morning, Vernon said one rival's cut price packaged cold cuts had dented sales of Oscar Mayer’s Lunchables as Kraft chose not to respond.
However, when a competitor come out with a lower price version of its Mac & Cheese, Kraft stepped up its advertising and offered bonus packs, he said.
"These are the choices we make as we roll out this playbook. In hindsight, I regret not responding on cold cuts exactly the way we responded on Mac & Cheese.”