The Kraft Heinz Company (KHC) Deutsche Bank dbAccess 2024 Global Consumer Conference summary

Leadership and organizational transformation

• Leadership team strengthened by internal promotions and simplification of structure, moving from two to four zones for greater agility.

• New roles created: omnichannel sales officer and global chief growth officer to drive execution and marketing innovation.

• Emphasis on a culture of ownership, ambition, and meritocracy, with a focus on transparency and rapid problem-solving.

• Agile@Scale methodology implemented, with 34 agile pods now addressing key priorities using digital tools and AI.

• Ownership mindset promoted throughout recruitment and development, fostering accountability and long-term vision.

Financial performance and strategy

• Consistent delivery on top and bottom line targets, with net debt at desired levels and investment grade rating restored.

• Initiated first-ever share buyback program, reflecting strong results and board support.

• Increased investments in CapEx, marketing, R&D, and technology to support long-term growth.

• Economic profit discipline introduced, reshaping resource allocation and compensation to balance growth and profitability.

• Guidance maintained despite operational hiccups, with improved supply chain stability and cost efficiencies.

Market trends and growth initiatives

• U.S. consumer remains value-focused, prompting expanded distribution in club and dollar stores.

• Volume headwinds mainly from Capri Sun (reformulation) and Lunchables (negative publicity), but recovery expected in H2 2024.

• Disciplined approach to pricing and promotions, leveraging AI for revenue management and avoiding margin erosion.

• Growth driven by innovation, renovation, and distribution, with increased marketing spend and new product launches.

• Platform-driven innovation includes disruptive technologies (e.g., 360CRISP) and plant-based joint ventures.