Kraft Heinz Prudently Employing Multiple Tacks as It Wades Through the Inflationary Malaise

Like its packaged food peers, Kraft Heinz benefited from consumers’ penchant for eating at home during the pandemic, with 85% of its sales driven through the retail channel. However, we also surmise the firm is realizing improved relevance with consumers, with management citing household penetration and repeat purchases edging higher since its revamped road map was put in place. More specifically, CEO Miguel Patricio has charged the firm to pursue efficiencies that will prove lasting, elevate brand spending (marketing and product innovation), enhance capabilities (category management and e-commerce), and leverage its scale to more nimbly respond to changing market conditions, which we perceive as judicious.