Kraft Heinz is planning to handle impending inflation by increasing efficiencies, among them “renovating” 90% of its product portfolio by next year, the head of its U.S business said in a recent interview.
Carlos Abrams-Rivera, president of the U.S. Zone at Kraft Heinz, said on the CNBC show “Power Lunch” that inflation so far has been “manageable” for the company, as it’s been in the “mid-single digits” for the company’s main commodities: cheese, coffee and meat. But he said Kraft Heinz will seek to institute some $400 million in efficiencies across the company by the end of this year.
In addition, 45% of the Kraft Heinz brand portfolio will be renovated by the end of this year, and 90% by next year. Kraft Heinz sold its Planters nuts unit to Hormel Foods earlier this year.
Abrams-Rivera also said Kraft Heinz would be looking at more variety in packaging size. This could inclde both “larger sizes in some of our packs to bring a better value for consumers” and smaller ones that can hit a lower price point, like a recently launched $1 Lunchables.