Kraft Heinz Works to Unearth Inefficiencies to Fund Investments in Its Brands and Capabilities

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 its revamped road map, as evidenced by its share position and recent shelf space gains, rather than being merely a byproduct of the macro and competitive backdrop. Since mid-2019, Kraft Heinz has prioritized the pursuit of efficiencies that prove lasting, brand spending elevation (marketing and product innovation), enhancement of capabilities (category management and e-commerce), and scale leverage to more nimbly respond to changing market conditions, which we perceive as prudent.