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Kraft Heinz Company (KHC) is a global manufacturer and marketer of food and beverage products, offering a diverse range of items to meet various consumer needs . The company sells condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee, and other grocery products . Kraft Heinz manages its sales portfolio through six consumer-driven product platforms, each designed to cater to specific consumer preferences and adaptable by segment and market .
- Taste Elevation - Focuses on condiments and sauces, enhancing the flavor of meals and accounting for a significant portion of the company's sales.
- Cheese and Dairy - Offers a variety of cheese and dairy products, catering to consumers seeking quality and taste in their dairy choices.
- Ambient Foods - Provides shelf-stable food products that are convenient and easy to store, meeting the needs of busy consumers.
- Frozen and Chilled Foods - Delivers a range of frozen and chilled meal options, ensuring freshness and convenience for quick meal solutions.
- Fast Fresh Meals - Offers ready-to-eat meals that are both quick to prepare and fresh, appealing to consumers with busy lifestyles.
- Easy Meals Made Better - Enhances traditional meal options with improved recipes and ingredients, providing better meal experiences.
- Real Food Snacking - Provides snack options made with real ingredients, catering to health-conscious consumers seeking nutritious snacks.
- Flavorful Hydration - Offers a variety of refreshment beverages, focusing on taste and hydration for consumers.
- Easy Indulgent Desserts - Delivers dessert options that are easy to prepare and indulgent, satisfying consumers' sweet cravings.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Miguel Patricio ExecutiveBoard | Non-Executive Chair of the Board | None | CEO of KHC from June 2019 to December 2023; transitioned to Non-Executive Chair on January 1, 2024. Formerly held senior roles at AB InBev and Coca-Cola. | |
Andre Maciel Executive | Executive Vice President and Global Chief Financial Officer | None | CFO since December 2021. Previously held senior finance roles at AB InBev. | |
Angel Willis Executive | Executive Vice President, Global General Counsel, and Corporate Affairs Officer | None | Joined KHC before November 2024; currently EVP, GC, and Corporate Affairs Officer. No prior roles at KHC are detailed. | |
Carlos Abrams-Rivera Executive | Chief Executive Officer | None | Joined KHC in February 2020; became CEO on January 1, 2024. Previously held leadership roles at Campbell Soup and Mondelēz International. | View Report → |
Cory Onell Executive | Executive Vice President and Chief Omnichannel Sales and Asian Emerging Markets Officer | None | Joined KHC in 2020; became EVP and Chief Omnichannel Sales and Asian Emerging Markets Officer in December 2023. Previously served as Chief Sales Officer, U.S.. | |
Diana Frost Executive | Global Chief Growth Officer | None | Joined KHC in 2020; became Global Chief Growth Officer in December 2023. Previously held leadership roles at Mars, Incorporated. | |
Flávio Barros Torres Executive | Executive Vice President and Global Chief Supply Chain Officer | None | Joined KHC in 2020; became EVP and Global Chief Supply Chain Officer in December 2021. Previously held senior operations roles at AB InBev. | |
Marcos Eloi Lima Executive | Executive Vice President and Global Chief Procurement and Sustainability Officer | None | Joined KHC in 2019; became EVP and Global Chief Procurement and Sustainability Officer in December 2023. Previously held procurement roles at AB InBev. | |
Melissa Werneck Executive | Executive Vice President and Global Chief People Officer | None | Joined KHC in 2015; became EVP and Global Chief People Officer in December 2021. Previously led global HR and IT functions. | |
Pedro Navio Executive | Executive Vice President and President, North America | None | Joined KHC in 2017; became EVP and President, North America in December 2023. Previously led KHC's operations in Brazil and Latin America. | |
Vince Garlati Executive | Vice President, Global Controller, and Principal Accounting Officer | None | Joined KHC in June 2018; resumed role as Principal Accounting Officer in November 2024 after a personal leave. | |
Alicia Knapp Board | Director | CEO of BHE Renewables | Joined KHC in May 2022; extensive experience in renewable energy and utility operations. | |
Debby Soo Board | Director | CEO of OpenTable; Board Member at EverCommerce Inc. | Joined KHC in October 2024; extensive experience in technology and hospitality leadership. | |
Diane Gherson Board | Director | Senior Lecturer at Harvard Business School; Board Member at National Academy of Human Resources | Joined KHC in November 2022; former CHRO at IBM, led digital HR transformation and cultural change. | |
Elio Leoni Sceti Board | Director | Co-Founder and Chairman of The Craftory; Trustee at One Young World | Joined KHC in May 2020; extensive experience in consumer goods and investment. | |
Humberto P. Alfonso Board | Director | Director at Eastman Chemical Company | Joined KHC in May 2023; former CFO of Hershey and Cadbury Schweppes. Extensive financial management expertise. | |
James Park Board | Director | Vice President at Alphabet Inc. | Joined KHC in May 2022; Co-Founder and former CEO of Fitbit. Expertise in technology and digital innovation. | |
John C. Pope Board | Lead Director | Director at Waste Management and Talgo S.A. | Joined KHC in 2015; former Chairman of Waste Management. Extensive experience in governance and audit committee leadership. | |
John T. Cahill Board | Vice Chair of the Board | Director at Colgate-Palmolive and Lead Independent Director at American Airlines | Joined KHC in 2015; former CEO of Kraft Foods Group. Extensive experience in food and beverage industry leadership. | |
Lori Dickerson Fouché Board | Director | Director at Hippo Holdings and Gusto Inc.; Trustee at Princeton University | Joined KHC in May 2021; extensive experience in insurance and financial services leadership. | |
Timothy Kenesey Board | Director | CEO of MedPro Group; Board Member at Fechheimer Brothers and Berkshire Hathaway subsidiaries | Joined KHC in January 2020; extensive experience in insurance and risk management. |
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Given your plan to invest in trade promotions selectively to drive better volume results for a more value-seeking consumer, how do you anticipate this will impact your gross margins, especially considering that approximately 30% to 40% of your U.S. portfolio requires incremental investment to close price gaps?
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You mentioned that you do not need volume to turn positive to achieve your guidance, yet you expect revenue and volume to gradually improve throughout the quarters; can you elaborate on the specific drivers of this expected improvement and the risks associated with relying on price increases in a challenging consumer environment?
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Despite onetime issues negatively impacting gross margin in Q1 and Q2, you achieved gross margin expansion; can you quantify the impact of these onetime issues and discuss how sustainable your gross margin improvements are in light of potential future pricing and volume pressures?
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In international markets like the UK, China, and Brazil, you've faced challenges such as increased private label competition, soft industry conditions, and customer inventory adjustments; what specific strategies are you implementing to mitigate these issues, and how do you expect these markets to perform in the back half of the year?
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Given that you're not always the highest-priced product in your categories and consumers are increasingly value-seeking, how confident are you in your ability to compete on non-price factors through innovation and marketing efforts, and what measurable progress have you seen in redefining your portfolio to better compete beyond pricing?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Walmart Inc. | Largest retailer; sells KHC goods | All | 21% of net sales in 2024, 2023, and 2022 |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Hemmer Acquisition | 2022 | Completed acquisition: Purchased 94% (later 100%) of Companhia Hemmer Indústria e Comércio for a total cash consideration of approximately $279 million with a significant $219 million non-tax deductible goodwill arising from their strong market presence in emerging markets and long-term expertise; assets were revalued during a measurement period. |
Just Spices Acquisition | 2022 | Completed acquisition: Acquired 85% of Just Spices GmbH for approximately 214 million euros ($243 million) with a redeemable noncontrolling interest for the remaining 15% and strategic alignment to expand Kraft Heinz's premium, direct-to-consumer spice blend offerings in Continental Europe, including a notable $163 million goodwill relating to its social media expertise. |
Recent press releases and 8-K filings for KHC.
- Q1 2025 Performance: Reported $6.1B in revenue, a 4.7% decline in organic net sales, adjusted EPS of $0.62, and $482M in free cash flow amid challenging macro conditions
- Guidance & Outlook: FY 2025 guidance anticipates organic net sales to decline between 1.5% and 3.5%, constant currency adjusted operating income to drop 5%–10%, with full‐year adjusted EPS between $2.51 and $2.67; Q2 to experience margin pressure from promotional activity, hedge losses, and commodity inflation
- Efficiency Progress: Achieved nearly $150M in gross efficiencies in Q1 toward a long‐term target of $2.5B by 2027, along with unlocking $1.5B in efficiencies since 2023 to improve operating margins
- Strategic Investments: Committed to enhancing key brands including Lunchables, Capri Sun, Kraft Mac & Cheese, and Kraft Mayonnaise, bolstered by focused spending in marketing, R&D, and technology to scale the brand growth system from 10% to 40% by year-end
- Capital Allocation: Maintained targeted net leverage of ~3.0x to support dividend payouts, share repurchases, and overall capital return