Kraft Heinz executives are confident they can manage anticipated inflation in the mid-single digit range across the portfolio this year by leveraging new product innovation and renovation, a quality over quantity approach to marketing and promotions, and ongoing cost savings initiatives, including SKU rationalization.
The company also may be better positioned than some for managing inflation because it has slowly increased pricing over the past year, which has contributed positively to its net sales in seven of the last eight quarters, US Zone President Carlos Abrams-Rivera told investors during the company’s first quarter call April 29.
“I feel good about our ability to deal with the inflation that we have and making sure we do this in a way that is positive for the company,” he said, noting much of it can be passed through to consumers.
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In September, Kraft Heinz rolled out its much-anticipated new business strategy to reinvest in brands and to use a platform-based approach for products and the spaces in which they compete.
CEO Miguel Patricio and his leadership team crafted the strategy and established the basic tenets by the beginning of 2020 before the coronavirus pandemic upended business and consumers everyday lives. Kraft Heinz first planned the rollout for early in the year, but then initially delayed it so then-new U.S. Zone President Carlos Abrams-Rivera could provide input. As the pandemic made most meetings virtual, the company rescheduled an in-person investor conference to discuss the new strategy slated for the spring to an online event in the fall.