Kraft Heinz: Difference between revisions

In addition to Kraft and Heinz, over 20 other brands are part of the company's profile, including [[Boca Burger]], [[Gevalia]], [[Grey Poupon]], [[Oscar Mayer]], [[Philadelphia Cream Cheese]], Primal Kitchen, and [[Wattie's]], eight of which have total individual sales of over $1 billion.<ref>{{cite web |title=The Kraft Heinz Company |url=http://www.kraftheinzcompany.com/company.html |website=www.kraftheinzcompany.com |access-date=June 26, 2019 |archive-url=https://web.archive.org/web/20190608144648/http://www.kraftheinzcompany.com/company.html |archive-date=June 8, 2019 |url-status=live }}</ref> Kraft Heinz ranked 114th in the 2018 [[Fortune 500|''Fortune'' 500]] list of the largest United States corporations based on 2017 total revenue.<ref>{{cite web|url=http://fortune.com/fortune500/list/|title=Fortune 500 Companies 2018: Who Made the List|website=Fortune|language=en-US|access-date=November 10, 2018|archive-url=https://web.archive.org/web/20181110190356/http://fortune.com/fortune500/list/|archive-date=November 10, 2018|url-status=live}}</ref>

The boards of both companies agreed to the merger of Kraft Foods and H.J. Heinz was agreed to by the boards of both companies, with approval by shareholders and regulatory authorities in early 2015.<ref name="BBC32050266">{{cite web|url=https://www.bbc.co.uk/news/business-32050266|title=Kraft Foods to merge with Heinz|date=March 25, 2015|work=BBC News|access-date=October 9, 2016|archive-url=https://web.archive.org/web/20170226154706/http://www.bbc.co.uk/news/business-32050266|archive-date=February 26, 2017|url-status=live}}</ref><ref name="ift">{{cite web|title=H.J. Heinz, Kraft Foods to merge|url=http://www.ift.org/food-technology/daily-news/2015/march/25/hj-heinz-kraft-foods-to-merge.aspx|publisher=[[Institute of Food Technologists]]|date=March 25, 2015|access-date=March 28, 2015|archive-url=https://web.archive.org/web/20150328222402/http://www.ift.org/food-technology/daily-news/2015/march/25/hj-heinz-kraft-foods-to-merge.aspx|archive-date=March 28, 2015|url-status=dead}}</ref> The new Kraft Heinz Company became the world's fifth-largest food and beverage company<ref name=time3757678>{{cite news|url=http://time.com/3757678/kraft-heinz-merger/|title=Kraft and Heinz Merge to Become World's 5th-Largest Food Company|author=Nolan Feeney|date=March 25, 2015|publisher=TIME magazine|access-date=October 9, 2016|archive-url=https://web.archive.org/web/20161008055448/http://time.com/3757678/kraft-heinz-merger/|archive-date=October 8, 2016|url-status=live}}</ref> and the third-largest in the United States.<ref name=BBC32050266/><ref>{{cite news |title=Heinz, Kraft Merger Creates 5th Largest Food, Beverage Company |url=https://www.naturalproductsinsider.com/operations/heinz-kraft-merger-creates-5th-largest-food-beverage-company |access-date=January 12, 2020 |work=Natural Products INSIDER |date=November 21, 2017 |language=en |archive-date=January 12, 2020 |archive-url=https://web.archive.org/web/20200112173911/https://www.naturalproductsinsider.com/operations/heinz-kraft-merger-creates-5th-largest-food-beverage-company |url-status=dead }}</ref> The Kraft Heinz co-headquarters are in Chicago at the [[Aon Center (Chicago)|Aon Center]] and in Pittsburgh at [[PPG Place]], with other offices across the United States, Canada, South America, Europe, Asia, and Australia.<ref name="kraftheinzcompany.com">{{cite web|title=Kraft-Heinz Company FactSheet|url=http://www.kraftheinzcompany.com/KraftHeinzCompany_FactSheet.pdf|access-date=February 17, 2017|website=www.kraftheinzcompany.com|archive-url=https://web.archive.org/web/20170202015802/http://www.kraftheinzcompany.com/KraftHeinzCompany_FactSheet.pdf|archive-date=February 2, 2017|url-status=live}}</ref> The merger was completed on July 2, 2015.<ref name="Merger Press Release">{{cite web|url=http://files.shareholder.com/downloads/ABEA-3QV6OO/323056694x0x837780/6F5AAFFE-7E3B-4804-8EEF-0B3F8743B03D/FINAL_Closing_Day_Press_Release.pdf|title = The Kraft Heinz Company Announces Successful Completion of the Merger between Kraft Foods Group and H.J. Heinz Holding Corporation|date = July 2, 2015|access-date = January 23, 2015|publisher = The Kraft Heinz Company|archive-url = https://web.archive.org/web/20150714043557/http://files.shareholder.com/downloads/ABEA-3QV6OO/323056694x0x837780/6F5AAFFE-7E3B-4804-8EEF-0B3F8743B03D/FINAL_Closing_Day_Press_Release.pdf|archive-date = July 14, 2015}}</ref>

In June 2019, Kraft Heinz reached a milestone in achieving a 100 percent [[Corporate Equality Index]] score from the [[Human Rights Campaign]].<ref>{{cite news |title=How One Company Got Top Marks for Inclusion {{!}} HRExecutive.com |url=https://hrexecutive.com/how-one-company-got-top-marks-for-inclusion/ |access-date=December 29, 2020 |work=hrexecutive.com |date=June 3, 2019}}</ref> The score recognized the company for its [[LGBTQ]] inclusion efforts and becoming a leader in the area among [[Fast-moving consumer goods|food CPG]] companies. On July 2, 2019, Kraft Heinz sold its Canadian natural cheese business, including the Cracker Barrel, P’tit Quebec, and aMOOza! brands to [[Parmalat]] for C$1.62 billion.<ref>{{cite web|url=https://www.bloomberg.com/press-releases/2019-07-02/parmalat-canada-announces-closing-of-its-acquisition-of-kraft-heinz-s-natural-cheese-division |title=Parmalat Canada Announces Closing of its Acquisition of Kraft Heinz's "Natural Cheese" Division |date=2 July 2019 |publisher=Bloomberg |access-date=2022-04-05}}</ref>

In September 2020, Kraft Heinz reached a deal to sell part of its cheese business to French multinational [[dairy product]]s corporation [[Lactalis]] for $3.2 billion.<ref name="wsj_Q114685966">{{Cite Q|Q114685966|access-date=2022-10-27}}</ref><ref>{{cite web|date=September 15, 2020|title=Kraft Heinz to sell part of cheese business for $3.2 Billion|url=https://www.foxbusiness.com/money/kraft-heinz-to-sell-part-of-cheese-business-for-3-2-billion|access-date=September 16, 2020|website=The Wall Street Journal|language=en-US}}</ref> The sale included the Breakstone's, Knudsen, [[Polly-O]], Athenos, [[Hoffman Dairy|Hoffman's]], and [[Cracker Barrel (cheese)|Cracker Barrel]] cheese brands for the United States, and [[Cheez Whiz]] outside of North America.<ref>{{cite web |title=Kraft Heinz Announces Agreement to Sell Its Natural Cheese Business to Groupe Lactalis |url=https://news.kraftheinzcompany.com/press-releases-details/2020/Kraft-Heinz-Announces-Agreement-to-Sell-Its-Natural-Cheese-Business-to-Groupe-Lactalis/default.aspx |website=news.kraftheinzcompany.com |access-date=September 18, 2020}}</ref> Kraft Heinz then partnered with Lactalis to manufacture Kraft and Velveeta cheeses. On November 10, 2021, the [[U.S. Justice Department]] approved the acquisition on the condition that they divest the Athenos and Polly-O businesses.<ref>{{cite news |last1=Bartz |first1=Diane |title=U.S. allows Lactalis to buy Kraft's U.S. natural cheese business, with conditions |url=https://www.reuters.com/business/us-allows-lactalis-buy-krafts-us-natural-cheese-business-with-conditions-2021-11-10/ |access-date=November 16, 2021 |work=Reuters |date=November 10, 2021 |language=en}}</ref> The sale was completed on November 29.<ref>{{cite news |last1=Channick |first1=Robert |title=Lactalis completes $3.3 billion acquisition of Kraft Heinz natural cheese business, launches new Chicago office |url=https://www.chicagotribune.com/business/ct-biz-kraft-heinz-cheese-sale-lactalis-chicago-office-20211130-y36j4nhsnndyvl4jhdckphh54q-story.html |access-date=December 11, 2021 |work=chicagotribune.com |date=November 29, 2021}}</ref> The divestiture of Athenos to Emmi Roth was completed on December 1,<ref>{{cite news |last1=Roth |first1=Emmi |title=Emmi Roth Expands Its Range of Specialty Cheeses With Addition of Athenos |url=https://www.prnewswire.com/news-releases/emmi-roth-expands-its-range-of-specialty-cheeses-with-addition-of-athenos-301435912.html |access-date=December 11, 2021 |work=www.prnewswire.com |date=December 2, 2021 |language=en}}</ref> while the divestiture of Polly-O to BelGioiso was completed on December 3.<ref>{{cite news |last1=Cheese |first1=BelGioioso |title=BelGioioso Cheese Completes Polly-O Acquisition |url=https://www.perishablenews.com/dairy/belgioioso-cheese-completes-polly-o-acquisition/ |access-date=December 11, 2021 |work=Perishable News |date=December 3, 2021}}</ref>

On September 15, 2020, Kraft Heinz announced its new Strategic Transformation Plan, including a new company purpose, "''Let's Make Life Delicious''" and an all -new vision, "''To sustainably grow by delighting more consumers globally''."<ref>{{cite news |title=The Kraft Heinz Company Unveils Its Strategic Transformation Plan, Updates 2020 Outlook, and Provides Long-term Financial Algorithm |url=https://www.businesswire.com/news/home/20200915005730/en/ |access-date=December 29, 2020 |work=www.businesswire.com |publisher=Business Wire |date=September 15, 2020 |language=en}}</ref> The next day Kraft Heinz also released its updated 2020 Environmental Social Governance (ESG) report with goals to make 100% of Kraft Heinz product packaging recyclable, reusable, or compostable by 2025 and plans to sustainably source 100 percent of [[Heinz Tomato Ketchup|Heinz Ketchup]] tomatoes by 2025.<ref>{{cite news |last1=Danigelis |first1=Alyssa |title=Kraft Heinz Reports Progress on Sustainable Packaging Goals |url=https://www.environmentalleader.com/2020/09/kraft-heinz-sustainable-packaging-goals/ |access-date=September 18, 2020 |work=Environment + Energy Leader |date=September 17, 2020}}</ref><ref>{{cite web |title=Kraft Heinz Renews Global Commitments in 2020 Environmental Social Governance Report |url=https://news.kraftheinzcompany.com/press-releases-details/2020/Kraft-Heinz-Renews-Global-Commitments-in-2020-Environmental-Social-Governance-Report/default.aspx |website=news.kraftheinzcompany.com |access-date=September 18, 2020}}</ref>

On February 11, 2021, Kraft Heinz announced its Q4 2020 and full -year results, resulting in 6.2 percent increased sales and over $26 billion in revenue.<ref>{{cite news |title=Kraft Heinz Reports Fourth Quarter and Full Year 2020 Results |url=https://finance.yahoo.com/news/kraft-heinz-reports-fourth-quarter-120000186.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAImFpT_O-YO2AG37L4XSg1Id8C3SOL7zstsWnPSAVZzAYrLFHugA7pjqHbJ-unwNJcjtKvYBMr-B5W894V04nBZ4ze9pVRsn2yJOpRy5yzNCyYOmJ-50wdgdxecIlXPf6DmwjB-wJdHY6MnW52iEcL_XXYbOrYEB6UiRbxi0Ek80 |access-date=February 11, 2021 |work=finance.yahoo.com}}</ref> The same day, Kraft Heinz announced their plans to sell its nuts business, including the [[Planters]] brand to [[Hormel]] for $3.35 billion.<ref>{{cite news |last1=Lucas |first1=Amelia |title=Kraft Heinz sells nuts business, including Planters, to Hormel for $3.35 billion |url=https://www.cnbc.com/2021/02/11/kraft-heinz-sells-nuts-business-including-planters-to-hormel-for-3point35-billion.html |work=CNBC |date=February 11, 2021 |language=en}}</ref> The transaction was completed on June 7.<ref>{{cite news |last1=Tascarella |first1=Patty |title=Planters packs a punch as Kraft Heinz pockets $3.35B in cash from sale of nuts business |url=https://www.bizjournals.com/pittsburgh/news/2021/06/07/kraft-heinz-sells-planters.html |access-date=June 12, 2021 |work=www.bizjournals.com |date=June 7, 2021}}</ref>

On January 19, 2022, Kraft Heinz announced that it had completed its acquisition of an 85% stake in Germany-based ''Just Spices GmbH''. Launched in 2014, Just Spices is a start-up with annual sales of approximately €60 million annual sales. Its 170-plus product portfolio includes spice blends, salad dressings, easy-to-prepare “In"In Minutes”Minutes" blends, and organic offerings for diverse meal occasions ranging from breakfast and light snacks to salads and baking, with a broad range of savory, sweet, classic, and exotic flavors. The proposed deal was first announced on Dec. 10, 2021.<ref>{{cite web|title=Kraft Heinz Completes Acquisition of Majority Stake in Just Spices, a Technology-Enabled Direct-to-Consumer Business|url=https://news.kraftheinzcompany.com/press-releases-details/2022/Kraft-Heinz-Completes-Acquisition-of-Majority-Stake-in-Just-Spices-a-Technology-Enabled-Direct-to-Consumer-Business/default.aspx|access-date=2022-01-30|website=news.kraftheinzcompany.com|language=en-US}}</ref>

On September 21, 2023, Kraft Heinz announced that it had signed a MoU with the Gujarat Government (In India) to start the first Global Capability Center (GCC) in Ahmedabad.

For the fiscal year 2017, Kraft Heinz reported earnings of {{US$}}11.0 billion, with an annual revenue of {{US$}}26.2 billion, a decline of 0.6% over the previous fiscal cycle. Kraft Heinz's shares traded at over $61 per share, and its market capitalization was valued at over {{US$}}136 billion in September 2018.<ref>{{cite web|url=https://www.macrotrends.net/stocks/charts/KHC/kraft-heinz/stock-price-history|title=Kraft Heinz – 3 Year Stock Price History {{!}} KHC|website=MarcoTrends|access-date=October 27, 2018|archive-url=https://web.archive.org/web/20181027185841/https://www.macrotrends.net/stocks/charts/KHC/kraft-heinz/stock-price-history|archive-date=October 27, 2018|url-status=live}}</ref>

In February 2019, shares in Kraft Heinz fell to a record low of under $35, after the company reported a $10.2bn loss for the previous year as the company announced that it would take a $15.4 billion write-downwritedown of its Kraft and Oscar Mayer brands, cut its dividend, and acknowledged that the [[U.S. Securities and Exchange Commission]] had opened a probe into its accounting practices.<ref>{{cite news|url=https://www.bbc.co.uk/news/business-47336304|title=Kraft Heinz shares fall as appetites wane|date=February 22, 2019|work=BBC News|access-date=February 22, 2019|archive-url=https://web.archive.org/web/20190223021017/https://www.bbc.co.uk/news/business-47336304|archive-date=February 23, 2019|url-status=live}}</ref> In August 2019, Kraft Heinz announced a further $1.22 billion in write-downswritedowns,<ref>{{cite news|url=https://www.wsj.com/articles/kraft-heinz-books-1-22-billion-in-impairment-charges-11565267075|title=Kraft Heinz Writes Down $1.2 Billion as Brands Wither|access-date=August 18, 2019|work=www.wsj.com|archive-url=https://web.archive.org/web/20190817193932/https://www.wsj.com/articles/kraft-heinz-books-1-22-billion-in-impairment-charges-11565267075|archive-date=August 17, 2019|url-status=live}}</ref> as well as the return of its former CFO, Paulo Basilio, who held the position until 2017, to replace David Knopf, saying that it wanted a "seasoned veteran" following a series of accounting errors.<ref>{{cite news|url=https://www.wsj.com/articles/kraft-heinz-replaces-finance-chief-11566824303|title=Kraft Heinz Replaces Finance Chief|last=Maidenberg|first=Heather Haddon and Micah|website=WSJ|language=en-US|access-date=August 26, 2019|archive-url=https://web.archive.org/web/20190826143155/https://www.wsj.com/articles/kraft-heinz-replaces-finance-chief-11566824303|archive-date=August 26, 2019|url-status=live}}</ref>

On February 21, 2019, Kraft Heinz reported that they received a [[U.S. Securities and Exchange Commission|Securities and Exchange Commission (SEC)]] [[subpoena]] in October that aimed to look into the company's accounting policies and internal controls.<ref name=":0">{{cite web |last1=LaVito |first1=Angelica |last2=Wang |first2=Christine |date=2019-02-21 |title=Kraft Heinz slashes dividend, discloses SEC subpoena |url=https://www.cnbc.com/2019/02/21/kraft-heinz-tanks-after-disclosing-it-was-subpoenaed-by-sec-over-accounting-policies.html |access-date=2019-02-23 |website=CNBC}}</ref> Kraft Heinz also announced that they slashedcut their [[dividend]] from 62.5 cents a share to 40 cents.<ref name=":0" /> The company also announced a [[Goodwill (accounting)|goodwill]] [[Impairment (financial reporting)|impairment charge]] that wrote down the value of the company's [[Kraft Foods|Kraft]] and [[Oscar Mayer]] brands of $15.4 billion in the fourth quarter, which resulted in a net loss of $12.61 billion.<ref name=":1">{{cite news |last=Wattles |first=Jackie |date=2019-02-21 |title=Kraft Heinz posts huge loss, slashes dividend and reveals SEC investigation |website=CNN |url=https://www.cnn.com/2019/02/21/investing/kraft-heinz-sec-investigation/index.html |access-date=2019-02-23}}</ref> The all-resulting news made the company's stock crash more than 20% in after-hours trading.<ref name=":1" /> The stock plunge resulted in [[Berkshire Hathaway]], the largest stockowner, recording a [[Write-off|write down]] of $3 billion and a stock value loss of $4.3 billion just a day before Berkshire Hathaway's quarterly earnings and annual report to investors.<ref>{{cite web |last=Imbert |first=Fred |date=2019-02-23 |title=Berkshire Hathaway battered by Kraft-Heinz woes, posting a Q4 loss and a $3 billion writedown |url=https://www.cnbc.com/2019/02/23/berkshire-hathaway-fourth-quarter-2018-earnings.html |access-date=2019-02-23 |website=CNBC}}</ref><ref>{{cite web |last=Franck |first=Thomas |date=2019-02-22 |title=Buffett's Berkshire Hathaway loses $4.3 billion on Kraft Heinz plunge |url=https://www.cnbc.com/2019/02/22/warren-buffetts-berkshire-hathaway-loses-more-than-3-billion-in-single-day-on-kraft-heinz-plunge.html |access-date=2019-02-23 |website=CNBC}}</ref>

In September 2020, Kraft Heinz announced its new enterprise strategy, including plans to cut $2 billion in costs over five years, resulting in an estimated generation of 4% to 6% adjusted earnings per share growth.<ref>{{cite news |last1=Lucas |first1=Amelia |title=Kraft Heinz looks to revamp Oscar Mayer brand, cut 20% of products, as it rethinks business |url=https://www.cnbc.com/2020/09/15/kraft-heinz-looks-to-balance-renovation-and-innovation-in-portfolio.html |access-date=September 18, 2020 |work=CNBC |date=September 15, 2020 |language=en}}</ref> The announcement resulted in multiple stock upgrades by CFRA and Guggenheim due to the renewed positive financial outlook of the company.<ref>{{cite news |last1=Garcia |first1=Tonya |title=Kraft Heinz stock upgraded twice with analysts upbeat about ongoing business transformation |url=https://www.marketwatch.com/story/kraft-heinz-stock-upgraded-twice-with-analysts-upbeat-about-ongoing-business-transformation-11600286425 |access-date=September 18, 2020 |work=MarketWatch}}</ref>

In 2017, the claim that the Kraft Parmesan Cheese label was misleading was rejected by judges. The label reads "Kraft 100% Grated Parmesan Cheese". It was argued that a "reasonable consumer" would know that the product could not be 100% cheese, as any dairy product degrades quickly without preservatives.<ref name=":2" />