Kraft Heinz Co. seems to have been in a rebuild ever since the merger of the two companies in 2015. With sales stuck at around $26 billion ever since, that rebuild continues under a new CEO following a year in which sales dropped 3% (to $25.8 billion) and net income dipped by $100 million, remaining a respectable $2.7 billion.
Carlos Abrams-Rivera told the Consumer Analyst Group of New York his first year as CEO has been “eventful” (the former Campbell Soup executive took over Jan. 1, 2024). While the company has two century-old and highly regarded brands in its name, he spent considerable time favoring the Heinz brand, calling it the company’s “crown jewel brand” across the globe. Although he didn’t offer specifics, he implied it was destined to move beyond ketchup – and already has, into mustard, mayonnaise and sauces.
The company has done that to varying degrees with its other top brands: Kraft, Oscar Mayer, Philadelphia, Lunchables, Velveeta, Ore-Ida and Capri Sun. Despite new brands in Mexican sauces, ethnic meals and frozen foods, those top eight brands represent 60% of the company’s sales.
Capri Sun drinks, long known for their pouches, are moving into single-serve bottles and larger multi-serve ones. Despite rumors that Kraft Heinz has been shopping its Oscar Mayer business, Abrams-Rivera said that brand improved its profit by 10% last year. Abrams-Rivera made no mention of it being for sale.
And while both the Heinz brand, especially, and Kraft to a lesser extent have some global penetration, the CEO noted emerging markets represent just 10% of sales – an opportunity. “Winning CPGs,” he said, are at 30%.
The rebuild continues. Guidance for this year is a zero to -2.5% drop in sales and a -1% to -4% cut in operating income. Abrams-Rivera said 2025 will be a year of “stabilization,” 2026’s theme will be “return to growth” and 2027 will see the company hitting its long-term algorithm.
