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.
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| 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?
Research analysts who have asked questions during Kraft Heinz earnings calls.
Andrew Lazar
Barclays PLC
4 questions for KHC
David Palmer
Evercore ISI
4 questions for KHC
Megan Clapp
Morgan Stanley
4 questions for KHC
Christopher Carey
Wells Fargo & Company
3 questions for KHC
Thomas Palmer
Citigroup Inc.
3 questions for KHC
Yasmin Beswandi
Bank of America
3 questions for KHC
Alexia Howard
AllianceBernstein
1 question for KHC
Leah Jordan
Goldman Sachs Group, Inc.
1 question for KHC
Max Gumport
BNP Paribas
1 question for KHC
Peter Galbo
Bank of America
1 question for KHC
| 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.
- Kraft Heinz is planning to spin off a portion of its grocery business into a new entity valued at up to $20 billion.
- The remaining company would focus on sauce brands, including Heinz Ketchup and Grey Poupon mustard.
- Since the 2015 merger, Kraft Heinz shares are down about 60%, though they were up 1.7% on the morning following the report.
- Executives noted strong margins in the ketchup segment, while other packaged foods face more headwinds due to declining consumer demand.
- Kraft Heinz intends to split into two entities, spinning off its grocery division into a standalone company potentially valued at $20 billion to unlock shareholder value.
- The remaining business will concentrate on household products to sharpen operational focus amid sluggish processed foods sales.
- Following the news, shares jumped 2.7% to $27.18, though they remain about 12% lower year-to-date.
- Analysts maintain a Hold rating with an average target price of $30.39 (13% upside) and a one-year fair value estimate of $34.78.
- Kraft Heinz is divesting its Italian infant and specialty food business—including Plasmon, Nipiol, Dieterba, Aproten and Biaglut—and the Latina production facility to NewPrinces for €120 million to focus on core product lines.
- The Latina facility, which produces about 1.8 billion Plasmon biscuits annually and employs ~300 people, will continue operations with all jobs retained under NewPrinces.
- The transaction is expected to close by late 2025, pending regulatory approvals and union consultations; it is advised by Houlihan Lokey and Vitale&Co.
- NewPrinces, rebranded from Newlat Food after its £700 million acquisition of Princes Limited in 2024, saw its stock price rise 4.7% on the announcement.
- Senior executives discussed evolving consumer challenges in the U.S. and internationally, emphasizing a renewed focus on delivering value through initiatives like a revamped brand growth system and product improvements (e.g., launch of a family-sized mac and cheese at $2).
- Leadership highlighted plans to accelerate investments in marketing, supply chain efficiency, and technology while evaluating strategic transactions to unlock shareholder value, reinforcing an offensive strategy in a challenging market environment.
- 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