Lori Butcher / Shutterstock.com
Kraft Heinz

Kraft Heinz Had a Fair Year, No Need for More Price Hikes

Feb. 16, 2023
Sales crept up only 1.7% in 2022 but profitability soared; volume down 3.4%.

Kraft Heinz this week reported financial results that echoed what other food & beverage processors are reporting, with one exception: the CEO sees no need for more price increases this year.

“From a pricing perspective, 99% of all needed pricing has already been announced for 2023,” Chairman & CEO Miguel Patricio told analysts in a teleconference after the financials were released. “As we look to the rest of the year, we have no current plans to announce new pricing” in all of the company’s markets.

But the fourth quarter and full-year numbers did resemble what other processors are reporting: higher sales fueled by price increases, with volume down.

Sales were up 10% in the fourth quarter alone but increased only 1.7% for the full company in all of 2022, to $26.5 billion (all results were aided by a 53rd week). International sales were the star, up 8% to more than $6 billion while North American sales actually dipped 0.1%. Net income was up nicely, to $2.37 billion, more than double the 2021 figure.

Pricing increased 13.2 percentage points versus the prior year period, “primarily driven by price increases to mitigate rising input costs,” according to a written report. “Volume/mix declined 3.4 percentage points versus the prior year period … primarily driven by supply constraints and elasticity impacts from pricing actions.”

The company expects 2023 organic net sales growth of 4-6% with high single-digit inflation for the year.

About the Author

Dave Fusaro | Editor in Chief

Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.

Sponsored Recommendations

Troubleshoot: Grittiness in gluten free cookies

Learn how to adjust gluten free cookie recipes for a softer texture.

Clabber Girl: Rising Success

Uncover how Clabber Girl Corporation achieved a remarkable 7% growth and improved manufacturing efficiency by seamlessly integrating Vicinity's batch manufacturing solution with...

Intelligent Blends: Taking Technology to the Next Level

Find out how our friends at Intelligent Blends use VicinityFood and Microsoft Dynamics GP to produce the best coffee around.

Key ingredient: Mother Murphy's Laboratories

Flavorings manufacturer Mother Murphy’s Laboratories integrates front office with production facility — improving operations from initial order to final invoice.