Kraft Heinz unveils strategic plan to fuel growth
The packaged food giant will focus on six consumer-driven platforms and will prioritise investment in those areas
The Kraft Heinz Company has unveiled a new strategy, operating model, and key initiatives, which it says signals a fundamental shift in its approach to growing its brands and its business at a global scale.
The new operating model has five primary elements: its people, a reduction in its consumer platforms from 55 to six, a disciplined approach to the platforms, a new ops centre, and new partnerships.
Kraft Heinz’s six new consumer-driven platforms are:
- Taste Elevation
- Easy Meals Made Better
- Real Food Snacking
- Fast Fresh Meals
- Easy Indulgent Desserts
- Flavorful Hydration
Each of these platforms will fill a grow, energise, or stabilise role within the portfolio.
The company said the new disciplined approach prioritises and invests differentially according to the opportunities and objectives for each platform.
The company, headquartered in Chicago and Pittsburgh, stated it is also establishing a long-term financial profile and updating its third-quarter and full-year 2020 financial outlook, including growing organic net sales by 1-2%, growing adjusted EBITDA by 2%-3%, and growing adjusted earnings per share by 4%-6%.
Chief executive Miguel Patricio said to be “extremely confident” that unlocking the power of scale with agility, combined with a new operating model, will return Kraft Heinz to consistent and sustainable growth.
Patricio said: “We are placing the consumer at the centre of everything we do, leveraging our greatest assets, strengthening our partnerships, generating fuel that funds growth investments like our 30% increase in marketing spend, and creating a clear path to rebuilding Kraft Heinz into the industry leader we have the potential to become.”
Under the new strategy, the company aims to cut $2 billion in costs over five years.