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]

The Kraft Heinz Company
Public
Traded as
ISINUS5007541064 
IndustryFood processing
FoundedJuly 2, 2015 (2015-07-02)
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)
ProductsBeverages
Convenience foods
Snack foods
Foodservice
Revenue US$24.97 billion (2019)
US$3.07 billion (2019)
US$1.94 billion (2019)
Total assets US$101.45 billion (2019)
Total equity US$51.75 billion (2019)
OwnersBerkshire Hathaway (27%)
3G Capital (20%)[2]
Number of employees
37,000 (2019)
DivisionsKraft Foods
Heinz
Websitekraftheinzcompany.com
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]

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
  1. "Kraft Heinz will slim down to fit into new Aon Center HQ space". Crain's Chicago Business. 16 July 2015. Retrieved 26 April 2020.
  2. 2019 Proxy Statement
  3. "The Kraft Heinz Company 2019 Form 10-K". sec.gov. U.S. Securities and Exchange Commission. 2020-02-14. Retrieved 2020-07-19.
  4. "The Kraft Heinz Company - Locations". www.kraftheinzcompany.com. Retrieved 26 April 2020.
  5. "Kraft Heinz headquarters to move to Chicago". chicagotribune.com.
  6. "The Kraft Heinz Company". www.kraftheinzcompany.com. Archived from the original on 11 September 2018. Retrieved 15 September 2018.
  7. 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.
  8. "The Kraft Heinz Company". www.kraftheinzcompany.com. Archived from the original on 8 June 2019. Retrieved 26 June 2019.
  9. "Fortune 500 Companies 2018: Who Made the List". Fortune. Archived from the original on 2018-11-10. Retrieved 2018-11-10.
  10. "Kraft Foods to merge with Heinz". BBC News. 25 March 2015. Archived from the original on 26 February 2017. Retrieved 9 October 2016.
  11. "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.
  12. 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.
  13. "Heinz, Kraft Merger Creates 5th Largest Food, Beverage Company". Natural Products INSIDER. 21 November 2017. Retrieved 12 January 2020.
  14. "Kraft-Heinz Company FactSheet" (PDF). www.kraftheinzcompany.com. Archived (PDF) from the original on 2 February 2017. Retrieved 17 February 2017.
  15. "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.
  16. 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.
  17. 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.
  18. 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.
  19. "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.
  20. "Springboard - Shaping the Future of the Food and Beverage Industry". Springboard. Archived from the original on 18 September 2018. Retrieved 18 September 2018.
  21. 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.
  22. "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.
  23. Sorvino, Chloe. "Kraft Heinz Names New CEO: Exclusive Interview". Forbes. Archived from the original on 30 July 2019. Retrieved 30 July 2019.
  24. 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.
  25. Lucas, Amelia (26 August 2019). "Kraft Heinz says Paulo Basilio to return as CFO". CNBC. Retrieved 12 January 2020.
  26. Giles, Martin. "Kraft Heinz Appoints New CIO To Deliver An AI Growth Recipe". Forbes. Retrieved 12 January 2020.
  27. "Global Brands". The Kraft Heinz Company. Retrieved 20 July 2020.
  28. "Kraft Heinz - 3 Year Stock Price History | KHC". MarcoTrends. Archived from the original on 2018-10-27. Retrieved 2018-10-27.
  29. "Kraft Heinz shares fall as appetites wane". BBC News. 22 February 2019. Archived from the original on 23 February 2019. Retrieved 22 February 2019.
  30. "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.
  31. 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
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