|Founded||July 2, 2015|
|Revenue||US$26.12 billion (2020)|
|US$2.13 billion (2020)|
|US$356 million (2020)|
|Total assets||US$99.83 billion (2020)|
|Total equity||US$50.24 billion (2020)|
Number of employees
|Footnotes / references|
The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American food company formed by the merger of Kraft Foods and Heinz. Co-headquartered in Chicago, Illinois, and Pittsburgh, Pennsylvania. Kraft Heinz is the third-largest food and beverage company in North America and the fifth-largest in the world with over $26.0 billion in annual sales as of 2020.
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. Kraft Heinz ranked 114th in the 2018 Fortune 500 list of the largest United States corporations based on 2017 total revenue.
The merger of Kraft Foods and H.J. Heinz was agreed by the boards of both companies, with approval by shareholders and regulatory authorities in early 2015. The new Kraft Heinz Company became the world's fifth-largest food and beverage company and the third-largest in the United States. The Kraft Heinz co-headquarters are in Chicago at the Aon Center and in Pittsburgh at PPG Place, with other offices across the United States, Canada, South America, Europe, Asia, and Australia. The companies completed the merger on July 2, 2015.
The merger did not affect the naming rights to Heinz Field, home of the Pittsburgh Steelers.
On February 17, 2017, it was reported that Kraft Heinz Co. had made a $143 billion approach to take over the British-Dutch multinational Unilever, a significantly larger competitor with 126,000 more employees and £24bn larger revenue than Kraft Heinz. Unilever declined the initial proposal. The takeover was subsequently abandoned on February 19 soon after UK Prime Minister Theresa May had ordered a scrutiny of the deal.
On October 19, 2017, Kraft Heinz announced that it was acquiring Cerebos' assets, including the Saxa salt, Gregg's and Bisto brands, from Suntory. On March 9, 2018, New Zealand's Commerce Commission approved the purchase, on the condition that they sell the licenses for Gregg's brand of sauces and the F. Whitlock Worcestershire sauce brand due to competition concerns.
In May 2018, Kraft Heinz launched Springboard Brands, a business focused on growing organic, natural, and "super-premium" food brands. Later that year, it was announced Kraft Heinz would acquire the Primal Kitchen brand as part of the company's Springboard Incubator. The $200 million deal was completed in early 2019 and was expected to generate $50 million in new annual revenue.
In July 2018, Kraft Heinz announced it was committing to make all of its global packaging recyclable, reusable or compostable by 2025.
On October 24, 2018, Kraft Heinz announced that it was selling its Indian nutritional beverage assets, including Complan and energy drink Glucon-D to Zydus Wellness. The sale was completed on January 30, 2019.
In April 2019, it was announced Miguel Patricio, former Chief Marketing Officer of InBev would replace Bernardo Hees as CEO of Kraft Heinz. Patricio took position of CEO in late June 2019 and Alex Behring remained chairman of the company. Later that year, Paulo Basilio returned to his role at Chief Financial Officer and Corrado Azzarita assumed the position of Chief Information Officer.
In June 2019, Kraft Heinz reached a milestone in achieving a 100 percent Corporate Equality Index score from the Human Rights Campaign. The score recognized the company for its LGBTQ inclusion efforts and becoming a leader in the area among 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.
In September 2020, Kraft Heinz reached a deal to sell part of its cheese business to French multinational dairy products corporation Lactalis for $3.2 billion. The sale included the Breakstone's, Knudsen, Polly-O, Athenos, Hoffman's, and Cracker Barrel cheese brands for the United States, and Cheez Whiz outside of North America. Kraft Heinz then partnered with Lactalis to manufacture Kraft and Velveeta cheeses.
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." 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 Ketchup tomatoes by 2025.
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. The same day, Kraft Heinz announced their plans to sell its nuts business, including the Planters brand, to Hormel for $3.35 billion. The transaction was completed on June 7.
In September 2021, Kraft Heinz announced that Hemmer, a Brazilian company focused on condiments and sauces, was being acquired for an undisclosed amount. This acquisition follows the recent agreement with Assan Foods – a Turkey company focused on sauces – belonging to Kibar Holding, for approximately $100 million.
As of 2021, in addition to both Kraft and Heinz, many more global brands are included in the Kraft Heinz portfolio:
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.
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-down 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. In August 2019, Kraft Heinz announced a further $1.22 billion in write-downs, 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. In September 2021, Kraft Heinz was fined $62m to settle the U.S. Securities and Exchange Commission probe into its improper claim of $200m in cost savings.
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. The announcement resulted in multiple stock upgrades by CFRA and Guggenheim due to the renewed positive financial outlook of the company.
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