Kraft Heinz Pursues Multiple Initiatives to Buoy Profit, Prudently Doesn't Scrimp on Brand Spending

Kraft Heinz benefited from consumers’ penchant for eating at home during the pandemic, with 85% of its sales driven through the retail channel. But we attribute recent performance to the prudence of its revamped road map (based on household penetration and repeat purchase metrics) rather than merely a byproduct of the macro environment. In this context, CEO Miguel Patricio has charged the firm to pursue efficiencies that 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.