The Kraft Heinz Company (KHC) Barclays 17th Annual Global Consumer Staples Conference summary

Industry environment and strategic outlook

• Operating environment has shifted but remains less severe than the 2008 recession, with cyclicality influenced by macroeconomic factors like Fed policy.

• Despite high investor focus on AI, food demand remains robust due to global population growth, guiding a long-term strategy.

• Strategy centers on a 10-year vision, with portfolio segmentation into Accelerate, Protect, and Balance categories, and focus on six billion-dollar brands.

• Growth priorities include expanding in emerging markets, away-from-home business, and accelerated U.S. platforms.

• Investments continue in marketing, technology, and G&A to support long-term growth and margin expansion.

Organizational transformation and operational improvements

• Shifted from inorganic to organic growth, integrating commercial and supply chain functions for efficiency.

• Created dedicated Away From Home and platform-based teams, aligning incentives with shareholder value and cash flow.

• Enhanced focus on market share, gross margin, and technology as competitive advantages.

• Disciplined capital allocation and continuous improvement have led to robust performance and supply chain efficiencies, with COGS efficiencies above 3.5% for four years.

• Strong balance sheet, excess cash generation, and high employee engagement support ongoing transformation.

U.S. retail and consumer engagement

• Promotions are targeted to 30% of categories, not revenue, with examples like mac and cheese and pasta sauces showing growth from strategic promotions.

• Focus remains on sustainable growth through marketing, innovation, and renovation, not just promotions.

• AI-driven revenue management optimizes promotional investments and timing for consumer needs.

• Expanded distribution in value channels like Dollar General and club stores, and introduced new formats and entry price points to address value-conscious consumers.

• Partnerships and innovation, such as with Vail Resorts and movie tie-ins, drive brand excitement and relevance.