Kraft Heinz Prudently Opts for Durable Cost Savings to Buoy Brand Investments

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 and competitive backdrop. In this context, since mid-2019, Kraft Heinz has prioritized the pursuit of efficiencies that prove lasting, brand spending elevation (marketing and product innovation), the enhancement of capabilities (category management and e-commerce), and scale leverage to more nimbly respond to changing market conditions, which we perceive as prudent.