Tag: Kraft

Is This New Plan Finally Going to Turn Kraft Heinz Around?

Heinz was bought out by 3G Capital in 2013, with the new owners focused on cutting costs. That’s the playbook that 3G Capital is known for, championing so-called “zero-based budgeting.” The goal is to reduce costs to improve profits. Heinz then bought Kraft in 2015, creating Kraft Heinz (NASDAQ:KHC), and started looking for even more fat to trim. The problem is that this business approach hasn’t performed nearly as well as expected for the company or investors.

Kraft Heinz recently came out with a different plan — will this one work? 

A tough business

Consumer staples stocks like food makers tend to be fairly stable businesses built around iconic brand names, broad distribution systems, and significant advertising might. Effectively, the major players own the brands you know by name and have the reach to get them into the places you shop. There are a lot of companies in the

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Kraft Heinz announces deal to sell its natural cheese business

Dee-Ann Durbin, Associated Press
Published 4:06 p.m. MT Sept. 15, 2020

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Kraft Heinz said Tuesday that it is selling its natural cheese business – including its Cracker Barrel and Breakstone’s brands – to French dairy company Lactalis Group as part of a larger restructuring.

The $3.2 billion sale includes Kraft Heinz production facilities in Tulare, California; Walton, New York; and Wausau, Wisconsin. About 750 employees at those plants will transfer to Lactalis Group.

Kraft Heinz, however, will keep its Philadelphia cream cheese brand, Kraft singles and the Velveeta and Cheez Whiz brands. It’s also retaining its macaroni and cheese business.

Included in the sale are Kraft Heinz’s natural, grated, cultured and specialty cheese businesses in the U.S., its grated cheese business in Canada and its entire international cheese business. Kraft Heinz already sold its natural cheese business in Canada last year for $1.2 billion.

Save better, spend better:  Money

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Kraft Heinz Revamps Business Structure, Sells Parts of Cheese Business to Lactalis | Investing News

By Siddharth Cavale and Richa Naidu

CHICAGO (Reuters) – Kraft Heinz Co

on Tuesday said it would sell its natural cheese business to French dairy company Groupe Lactalis for $3.2 billion, step up its marketing budget and overhaul its supply chain, hoping to save $2 billion by 2024 and halt weak sales and brand deterioration.

The company also forecast better-than-expected sales for the year, sending shares of Kraft Heinz up about 1% in afternoon trading.

Packaged food companies like Kraft Heinz and Campbell Soup

that market canned food and salty snacks have for years faced a perception that their products are unhealthy. At the same time, the industry is battling aggressive competition from cheaper private-label brands from Walmart

and Kroger

.

At its virtual investor day, Chicago-based Kraft Heinz said it would now manage its business by distributing brands among six platforms built around the occasions people consume Kraft products

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Kraft Heinz looks to balance ‘renovation and innovation’ in portfolio

DJ O’Keefe, 12, and his sister Dallas O’Keefe, 13, both of Rochester, NY, pose for a photo with the Oscar Mayer Weiner Mobile at the annual Berkshire Hathaway shareholder meeting in Omaha, Nebraska, May 4, 2019.

Scott Morgan | Reuters

As Kraft Heinz tries to make its new customers stick around after the coronavirus pandemic, the company is rethinking its approach to how it responds to trends. 

“We need to make sure that going forward, we have the right balance of innovation and renovation,” Kraft Heinz’s head of U.S. business Carlos Abrams-Rivera said in an interview.

Shares of Kraft Heinz were up 1% in afternoon trading after the company presented its long-term turnaround plan to investors. As its blueprint is implemented, the company is projecting long-term organic sales growth of 1% to 2% and adjusted earnings per share growth of 4% to 6%.

In the past, according to Abrams-Rivera, Kraft

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