The Kraft Heinz Company (Kraft Heinz) operates as a global food and beverage company.
The company leverages its scale and agility to unleash the full power of Kraft Heinz across a portfolio of eight consumer-driven product platforms.
As of December 28, 2024, the company managed its product portfolio through eight consumer-driven product platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, and Meats. A platform is a lens created for the portfo...
The Kraft Heinz Company (Kraft Heinz) operates as a global food and beverage company.
The company leverages its scale and agility to unleash the full power of Kraft Heinz across a portfolio of eight consumer-driven product platforms.
As of December 28, 2024, the company managed its product portfolio through eight consumer-driven product platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, and Meats. A platform is a lens created for the portfolio based on a grouping of consumer needs. The platforms help the company to manage and organize its business effectively by providing insight into its various product categories and brands.
Taste Elevation includes condiments, sauces, dressings, and spreads.
Easy Ready Meals includes Kraft Mac & Cheese varieties, frozen potato products, and other frozen meals.
Substantial Snacking includes Lunchables meal kits, frozen snacks, and pickles.
Desserts includes dry packaged desserts, refrigerated ready to eat desserts, and other dessert toppings.
Hydration includes ready to drink beverages, powdered beverages, and liquid concentrates.
Cheese includes American sliced and recipe cheeses.
Coffee includes mainstream coffee, coffee pods, and premium coffee.
Meats includes cold cuts, bacon, and hot dogs.
In 2024, the company divided its International segment into three operating segments — Europe and Pacific Developed Markets (‘EPDM’ or ‘International Developed Markets’), West and East Emerging Markets (‘WEEM’), and Asia Emerging Markets (‘AEM’) — to enable enhanced focus on the different strategies required for each of these regions as part of its long-term strategic plan.
Subsequently, the company manages its operating results through four operating segments. It has two reportable segments defined by geographic region: North America and International Developed Markets. Its remaining operating segments, consisting of WEEM and AEM, are combined and disclosed as Emerging Markets.
Trademarks and Intellectual Property
North America: This segment’s majority owned and licensed trademarks are Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Capri Sun, Maxwell House, Kool-Aid, and Jell-O.
International Developed Markets: This segment’s majority owned and licensed trademarks are Heinz, Golden Circle, Wattie’s, and Plasmon
Emerging Markets: This segment’s majority owned and licensed trademarks are Heinz, ABC, Master, Quero, Kraft, and Pudliszki
The company sells certain products under brands it licenses from third parties. In 2024, brands used under licenses from third parties included Capri Sun packaged drink pouches for sale in the company’s North America segment. The company also grants certain licenses to third parties to use its intellectual property rights in select jurisdictions. In its agreements, with an affiliate of Groupe Lactalis (‘Lactalis’), the company granted the other party various licenses to use certain of its and their respective intellectual property rights in perpetuity, including perpetual licenses for the Kraft and Velveeta brands for certain cheese products.
The company also owns numerous patents worldwide. The company considers its portfolio of patents, patent applications, patent licenses under patents owned by third parties, proprietary trade secrets, technology, know-how processes, and related intellectual property rights to be material to its operations. Patents, issued or applied for, cover inventions ranging from packaging techniques to processes relating to specific products and to the products themselves. While the company’s patent portfolio is material to its business, the loss of one patent or a group of related patents would not have a material adverse effect on its business.
Research and Development Expense
The company’s research and development expenses were approximately $150 million in 2024.
Sales and Customers
The company’s products are sold through its own sales organizations and through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; and institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies. The company’s products are also sold online through various e-commerce platforms and retailers.
The company has key customers in different regions around the world. In 2024, the five largest customers in the company’s North America segment accounted for approximately 46% of North America segment net sales and the five largest customers in its International Developed Markets segment accounted for approximately 28% of International Developed Markets segment net sales, and the five largest customers in Emerging Markets accounted for approximately 12% of Emerging Markets net sales. The company’s largest customer, Walmart Inc., represented approximately 21% of its net sales in 2024. Both of the company’s segments have sales to Walmart Inc.
Seasonality
Although crops constituting certain of the company’s raw food ingredients are harvested on a seasonal basis, the majority of the company’s products are produced throughout the year (year ended December 28, 2024). Seasonal factors inherent in the company’s business change the demand for products, including holidays, changes in seasons, or other annual events.
Government Regulation
In the United States, the company’s activities are subject to regulation by various federal government agencies, including the Food and Drug Administration, Department of Agriculture, Federal Trade Commission, Department of Labor, Department of Commerce, and Environmental Protection Agency, as well as various state and local agencies.
In the company’s business dealings, it is also required to comply with the U.S. Foreign Corrupt Practices Act (FCPA), the U.K. Bribery Act, the U.S. Trade Sanctions Reform and Export Enhancement Act, and various other anti-corruption regulations in the regions in which it operates.
In the United States, where a significant portion of the company’s business operates, these laws and regulations include the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act, and the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). CERCLA imposes joint and several liability on each potentially responsible party. The company is involved in a number of active proceedings in the United States under CERCLA (and other state actions under similar legislation) related to certain closed, inactive, or divested operations for which the company retains liability.
History
The company was founded in 1869. It was incorporated in 2013. The company was formerly known as Hawk Acquisition Intermediate Corporation II and changed its name to H. J. Heinz Corporation II in 2014 and to The Kraft Heinz Company in 2015.