Kraft Heinz Employs a Sound Strategic Playbook Anchored in Using Cost Savings to Fuel Brand Spending

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). Although Kraft Heinz has succumbed to the waning consumer narrative, we view its revamped strategic roadmap as prudent for the long term. This has been reflected in its improved market share and gains in shelf space over the past few years. As a part of these efforts, since mid-2019, Kraft Heinz has prioritized the pursuit of efficiencies that prove lasting: enhancement of its capabilities (category management and e-commerce) and scale leverage to more nimbly respond to changing market conditions and elevate its brand spending (marketing and product innovation), which we perceive as prudent.