Kraft Heinz
The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American food company formed by the merger of Kraft Foods and Heinz and is co-headquartered in Chicago, Illinois, and Pittsburgh, Pennsylvania.[4][5] Kraft Heinz is the third-largest food and beverage company in North America and the fifth-largest in the world with $25.0 billion in annual sales as of 2019.[6][7]
![]() | |
![]() | |
Public | |
Traded as |
|
ISIN | US5007541064 ![]() |
Industry | Food processing |
Founded | July 2, 2015 |
Headquarters | Chicago, Illinois and Pittsburgh, Pennsylvania , U.S. |
Area served | Worldwide |
Key people | Alex Behring (Chairman) John Cahill (Vice chairman) Miguel Patricio (CEO) Paulo Basilio (Chief financial officer) |
Products | Beverages Convenience foods Snack foods Foodservice |
Revenue | ![]() |
![]() | |
![]() | |
Total assets | ![]() |
Total equity | ![]() |
Owners | Berkshire Hathaway (27%) 3G Capital (20%)[2] |
Number of employees | 37,000 (2019) |
Divisions | Kraft Foods Heinz |
Website | kraftheinzcompany |
Footnotes / references [3] |
In addition to Kraft and Heinz, over 20 other brands are part of the company's profile including Boca Burger; Gevalia; Grey Poupon, Oscar Mayer, Philadelphia Cream Cheese, Planters, and Wattie's of which eight have total individual sales of over $1 billion.[8] Kraft Heinz ranked No. 114 in the 2018 Fortune 500 list of the largest United States corporations based on 2017 total revenue.[9]
History
The merger of Kraft Foods and H.J. Heinz was agreed by the boards of both companies, with approval by shareholders and regulatory authorities in early 2015.[10][11] The new Kraft Heinz Company became the world's fifth-largest food and beverage company[12] and the third-largest in the United States.[10][13] The Kraft Heinz co-headquarters are in Chicago at the Aon Center and in Pittsburgh at PPG Place, with other offices across the United States, Canada, South America, Europe, Asia, and Australia.[14] The companies completed the merger on July 2, 2015.[15]
The merger did not affect the naming rights to Heinz Field, home of the Pittsburgh Steelers.[16]
On February 17, 2017, it was reported that Kraft Heinz Co. had made a $143 billion approach to take over the British-Dutch multinational Unilever, a significantly larger competitor with 126,000 more employees and £24bn larger revenue than Kraft Heinz.[17] Unilever declined the initial proposal.[18] The takeover was subsequently abandoned on 19 February soon after UK Prime Minister Theresa May had ordered a scrutiny of the deal.[17]
In May 2018, Kraft Heinz launched Springboard Brands, a business focused on growing organic, natural, and "super-premium" food brands.[19][20] Later that year, it was announced Kraft Heinz would acquire the Primal Kitchen brand as part of the company's Springboard Incubator.[21] The $200 million deal was completed in early 2019 and was expected to generate $50 million in new annual revenue.
In July 2018, Kraft Heinz announced it was committing to make all of its global packaging recyclable, reusable or compostable by 2025.[22]
In April 2019, it was announced Miguel Patricio, former Chief Marketing Officer of InBev would replace Bernardo Hees as CEO of Kraft Heinz.[23] Patricio took position of CEO in late June 2019 and Alex Behring remained chairman of the company.[24] Later that year, Paulo Basilio returned to his role at Chief Financial Officer and Corrado Azzarita assumed the position of Chief Information Officer.[25][26]
Brands
As of 2020, in addition to both Kraft and Heinz, many more global brands are included in the Kraft Heinz portfolio:[27]
- ABC
- Bénédicta
- Capri Sun
- Classico
- Golden Circle
- Honig
- HP Sauce
- Jell-O
- Karvan Cevitam
- Kool-Aid
- Lunchables
- Master Soy Sauce
- Maxwell House
- Ore Ida
- Oscar Mayer
- Philadelphia Cream Cheese
- Planters
- Plasmon
- Pudliszki
- Quero
- Velveeta
- Wattie's
Finance
For the fiscal year 2017, Kraft Heinz reported earnings of US$11.0 billion, with an annual revenue of US$26.2 billion, a decline of 0.6% over the previous fiscal cycle. Kraft Heinz's shares traded at over $61 per share, and its market capitalization was valued at over US$136 billion in September 2018.[28]
In February 2019, shares in Kraft Heinz fell to a record low of under $35, after the company reported a $10.2bn loss for the previous year as the company announced that it would take a $15.4 billion write down of its Kraft and Oscar Mayer brands, slashed its dividend, and acknowledged that the U.S. Securities and Exchange Commission had opened a probe into its accounting practices.[29] In August 2019 Kraft Heinz announced a further $1.22 billion in write downs.[30] In August 2019, Kraft Heinz announced it was bringing back its former CFO, Paulo Basilio, who had served in the position until 2017, to replace David Knopf, saying it wanted a "seasoned veteran" in the job following a series of accounting errors.[31]
Year | Revenue in mil. USD-$ |
Net income in mil. USD-$ |
Price per Share in USD-$ |
Employees |
---|---|---|---|---|
2010 | 17,797 | 3,534 | ||
2011 | 18,576 | 1,775 | ||
2012 | 18,271 | 1,637 | ||
2013 | 11,529 | 1,013 | ||
2014 | 10,922 | −63 | ||
2015 | 18,338 | −266 | 77.01 | 42,000 |
2016 | 26,487 | 3,452 | 81.91 | 41,000 |
2017 | 26,232 | 10,999 | 61.75 | 39,000 |
2018 | 26,300 | −10,200 | ||
2019 | 24,977 | 1,935 |
See also
References
- "Kraft Heinz will slim down to fit into new Aon Center HQ space". Crain's Chicago Business. 16 July 2015. Retrieved 26 April 2020.
- 2019 Proxy Statement
- "The Kraft Heinz Company 2019 Form 10-K". sec.gov. U.S. Securities and Exchange Commission. 2020-02-14. Retrieved 2020-07-19.
- "The Kraft Heinz Company - Locations". www.kraftheinzcompany.com. Retrieved 26 April 2020.
- "Kraft Heinz headquarters to move to Chicago". chicagotribune.com.
- "The Kraft Heinz Company". www.kraftheinzcompany.com. Archived from the original on 11 September 2018. Retrieved 15 September 2018.
- Feeney, Nolan. "Kraft-Heinz Merge to Become World's 5th Largest Food Company". Time. Archived from the original on 27 October 2018. Retrieved 27 October 2018.
- "The Kraft Heinz Company". www.kraftheinzcompany.com. Archived from the original on 8 June 2019. Retrieved 26 June 2019.
- "Fortune 500 Companies 2018: Who Made the List". Fortune. Archived from the original on 2018-11-10. Retrieved 2018-11-10.
- "Kraft Foods to merge with Heinz". BBC News. 25 March 2015. Archived from the original on 26 February 2017. Retrieved 9 October 2016.
- "H.J. Heinz, Kraft Foods to merge". Institute of Food Technologists. 25 March 2015. Archived from the original on 28 March 2015. Retrieved 28 March 2015.
- Nolan Feeney (25 March 2015). "Kraft and Heinz Merge to Become World's 5th-Largest Food Company". TIME magazine. Archived from the original on 8 October 2016. Retrieved 9 October 2016.
- "Heinz, Kraft Merger Creates 5th Largest Food, Beverage Company". Natural Products INSIDER. 21 November 2017. Retrieved 12 January 2020.
- "Kraft-Heinz Company FactSheet" (PDF). www.kraftheinzcompany.com. Archived (PDF) from the original on 2 February 2017. Retrieved 17 February 2017.
- "The Kraft Heinz Company Announces Successful Completion of the Merger between Kraft Foods Group and H.J. Heinz Holding Corporation" (PDF). The Kraft Heinz Company. 2 July 2015. Archived from the original (PDF) on 14 July 2015. Retrieved 23 January 2015.
- Lindeman, Teresa F. (25 March 2015). "Officials: Heinz Field name will not change with merger deal". Pittsburgh Post-Gazette. Archived from the original on 31 May 2016. Retrieved 9 October 2016.
- Armstrong, Ashley (2017-02-19). "Kraft Heinz abandons £115bn Unilever mega-deal". The Telegraph. Archived from the original on 2017-02-19. Retrieved 2017-02-19.
- Chaudhuri, Saabira; Gasparro, Annie; Steele, Anne (2017-02-17). "Kraft's $143 Billion Bid for Unilever Highlights Squeeze in Consumer Goods". Wall Street Journal. ISSN 0099-9660. Archived from the original on 2017-02-17. Retrieved 2017-02-17.
- "Kraft Heinz is going after small organic food brands just as Whole Foods abandons them". Business Insider. Archived from the original on 18 September 2018. Retrieved 18 September 2018.
- "Springboard - Shaping the Future of the Food and Beverage Industry". Springboard. Archived from the original on 18 September 2018. Retrieved 18 September 2018.
- Hirsch, Lauren (29 November 2018). "Kraft Heinz agrees to buy paleo mayo and dressing company Primal Kitchen". CNBC. Archived from the original on 30 July 2019. Retrieved 30 July 2019.
- "Kraft Heinz Expands Environmental Commitments to Include Sustainable Packaging and Carbon Reduction | The Kraft Heinz Company Press Room". news.kraftheinzcompany.com. Retrieved 12 January 2020.
- Sorvino, Chloe. "Kraft Heinz Names New CEO: Exclusive Interview". Forbes. Archived from the original on 30 July 2019. Retrieved 30 July 2019.
- Smith, Connor. "3 Things to Know About New Kraft Heinz CEO Miguel Patricio". www.barrons.com. Archived from the original on 3 May 2019. Retrieved 30 July 2019.
- Lucas, Amelia (26 August 2019). "Kraft Heinz says Paulo Basilio to return as CFO". CNBC. Retrieved 12 January 2020.
- Giles, Martin. "Kraft Heinz Appoints New CIO To Deliver An AI Growth Recipe". Forbes. Retrieved 12 January 2020.
- "Global Brands". The Kraft Heinz Company. Retrieved 20 July 2020.
- "Kraft Heinz - 3 Year Stock Price History | KHC". MarcoTrends. Archived from the original on 2018-10-27. Retrieved 2018-10-27.
- "Kraft Heinz shares fall as appetites wane". BBC News. 22 February 2019. Archived from the original on 23 February 2019. Retrieved 22 February 2019.
- "Kraft Heinz Writes Down $1.2 Billion as Brands Wither". www.wsj.com. Archived from the original on 17 August 2019. Retrieved 18 August 2019.
- Maidenberg, Heather Haddon and Micah. "Kraft Heinz Replaces Finance Chief". WSJ. Archived from the original on 2019-08-26. Retrieved 2019-08-26.
Further reading
- Susanna, Kim (2015-03-25). "How the New Kraft Heinz Co. Is About to Take Over Your Kitchen". ABC News. Retrieved 2015-03-26.
External links
- Business data for The Kraft Heinz Company: