Kraft Heinz executive says company is managing inflation with efficiencies, brand renovation

CNBC2021-06-24

The head of Kraft Heinz's U.S. business told CNBC on Wednesday that rising price pressures during the Covid pandemic have so far been "manageable" for the food and beverage giant. "From our ...

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JiaXinQuah
2021-06-24
JiaXinQuah
Love their chilli!
Serenecheong
2021-06-24
Serenecheong
[Lovely]
Frisbee
2021-06-24
Frisbee
cool
PengsieX
2021-06-24
PengsieX
A global brand with economies of scale
49f16300
2021-06-24
49f16300
Ok
Razak
2021-06-24
Razak
Optimization

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Data from the Labor Department shows that in May, consumer pricesrose at their fastest pace since 2008.\nAbrams-Rivera said Kraft Heinz has a \"three-pronged approach\" to manage inflationary pressures. The first, he said, is a goal of delivering about $400 million in efficiencies across the company by year-end, which are \"helping us manage through this.\"\nAnother focus is on renovating the company's brands — which include Oscar Mayer, Velveeta and Maxwell House — to continue appealing to consumers and retain a strong pricing power, Abrams-Rivera said. He said Kraft Heinz will have renovated 45% of its U.S. portfolio by the end of 2021 and 90% next year.\nKraft Heinz had aimed to eliminate 1,100 products — or 20% of its business — by the end of 2020, in an effort to attract more customers. 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Lunchables — we actually launched a new $1 pack also,\" he said. \"Having options for consumers at different levels that allows us to have a good value is also part of how we're managing through this whole inflation situation we're seeing.\"\nMore broadly, Abrams-Rivera said, the behavior shifts that occurred during the pandemic — people spending more time at home and eating together more — are likely to stick around and Kraft Heinz hopes to capitalize on it.\nConsumers have also made huge investments in their home through renovations and started to cook more, he said. \"That is a place where we can bring a different scale and a different benefit that allows us to continue growing in a way that nobody else 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