Amid Current Headwinds, Kraft Heinz Is Brewing Up Prudent Investments for the Long Term

Kraft Heinz benefited from consumers’ penchant for eating at home during the pandemic, with 85% of its sales resulting from traditional retail channels (brick and mortar and online). And while Kraft Heinz hasn't been immune to the weakening consumer narrative, we see the prudence in its revamped strategic road map longer term. We think this has been reflected over the past few years in its improved share position and recent shelf space gains. As a part of these efforts, since mid-2019, Kraft Heinz has prioritized the pursuit of efficiencies that prove lasting, brand spending elevation (marketing and product innovation), enhancement of its capabilities (category management and e-commerce), and scale leverage to more nimbly respond to changing market conditions, which we perceive as prudent.