Kraft Heinz

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
The Kraft Heinz Company
Public
Traded as
ISINUS5007541064 Edit this on Wikidata
IndustryFood processing
FoundedJuly 2, 2015; 4 years ago (2015-07-02)
Headquarters
Chicago, Illinois
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
Cheese
Convenience foods
Dairy foods
Snack foods
RevenueIncrease US$26.27 billion (2018)
Decrease US$−10.22 billion (2018)
Decrease US$−10.19 billion (2018)
Total assetsDecrease US$103.46 billion (2018)
Total equityDecrease US$51.66 billion (2018)
Number of employees
38,000
DivisionsKraft Foods
Heinz
Websitekraftheinzcompany.com
Footnotes / references
[1]

The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American food company formed by the merger of Kraft Foods and Heinz with co-headquarters in Chicago, Illinois and Pittsburgh, Pennsylvania.[2][3] Kraft Heinz is the third-largest food and beverage company in North America and the fifth-largest in the world with $26.2 billion in annual sales as of 2018.[4][5]

In addition to Kraft and Heinz, over 20 other brands are part of the company's profile including Boca Burger; Gevalia coffee; Grey Poupon; O, That's Good!; Oscar Mayer; Philadelphia Cream Cheese; Planters; Primal Kitchen; and more, of which eight have total individual sales of over $1 billion.[6] Kraft Heinz ranked No. 114 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.[7]

History[edit]

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.[8][9] The new Kraft Heinz Company became the world's fifth-largest food and beverage company[10] and the third-largest in the United States.[8][11] 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.[12] The companies completed the merger on July 2, 2015.[13]

The merger did not affect the naming rights to Heinz Field, home of the Pittsburgh Steelers.[14]

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.[15] Unilever declined the initial proposal.[16] The takeover was subsequently abandoned on 19 February soon after UK Prime Minister Theresa May had ordered a scrutiny of the deal.[15]

In May 2018, Kraft Heinz launched Springboard Brands, a business focused on growing organic, natural, and "super-premium" food brands.[17][18] Later that year, it was announced Kraft Heinz would acquire the Primal Kitchen brand as part of the company's Springboard Incubator.[19] 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.[20]

In April 2019, it was announced Miguel Patricio, former Chief Marketing Officer of InBev would replace Bernardo Hees as CEO of Kraft Heinz.[21] Patricio took position of CEO in late June 2019 and Alex Behring remained chairman of the company.[22] Later that year, Paulo Basilio returned to his role at Chief Financial Officer and Corrado Azzarita assumed the position of Chief Information Officer.[23][24]

Brands[edit]

As of 2019, in addition to both Kraft and Heinz, over 20 global brands are included in the Kraft Heinz portfolio:[25]

Finance[edit]

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.[26]

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 Meyer brands, slashed its dividend, and acknowledged that the U.S. Securities and Exchange Commission had opened a probe into its accounting practices.[27] In August 2019 Kraft Heinz announced a further $1.22 billion in write downs.[28] 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.[29]

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

See also[edit]

References[edit]

  1. ^ "The Kraft Heinz Company 2018 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. June 2019. Archived from the original on 2019-06-26. Retrieved 2019-06-26.
  2. ^ "Kraft Heinz headquarters to move to Chicago". chicagotribune.com. Chicago Tribune. 16 July 2015. Archived from the original on 26 June 2019. Retrieved 26 June 2019.
  3. ^ Gasparro, Annie. "Kraft Heinz to Move Chicago-Area Headquarters to City Center". WSJ. Archived from the original on 9 August 2019. Retrieved 9 August 2019.
  4. ^ "The Kraft Heinz Company". www.kraftheinzcompany.com. Archived from the original on 11 September 2018. Retrieved 15 September 2018.
  5. ^ 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.
  6. ^ "The Kraft Heinz Company". www.kraftheinzcompany.com. Archived from the original on 8 June 2019. Retrieved 26 June 2019.
  7. ^ "Fortune 500 Companies 2018: Who Made the List". Fortune. Archived from the original on 2018-11-10. Retrieved 2018-11-10.
  8. ^ a b "Kraft Foods to merge with Heinz". BBC News. 25 March 2015. Archived from the original on 26 February 2017. Retrieved 9 October 2016.
  9. ^ "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.
  10. ^ 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.
  11. ^ "Heinz, Kraft Merger Creates 5th Largest Food, Beverage Company". Natural Products INSIDER. 21 November 2017. Retrieved 12 January 2020.
  12. ^ "Kraft-Heinz Company FactSheet" (PDF). www.kraftheinzcompany.com. Archived (PDF) from the original on 2 February 2017. Retrieved 17 February 2017.
  13. ^ "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.
  14. ^ 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.
  15. ^ a b 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.
  16. ^ 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.
  17. ^ "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.
  18. ^ "Springboard - Shaping the Future of the Food and Beverage Industry". Springboard. Archived from the original on 18 September 2018. Retrieved 18 September 2018.
  19. ^ 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.
  20. ^ "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.
  21. ^ Sorvino, Chloe. "Kraft Heinz Names New CEO: Exclusive Interview". Forbes. Archived from the original on 30 July 2019. Retrieved 30 July 2019.
  22. ^ 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.
  23. ^ Lucas, Amelia (26 August 2019). "Kraft Heinz says Paulo Basilio to return as CFO". CNBC. Retrieved 12 January 2020.
  24. ^ Giles, Martin. "Kraft Heinz Appoints New CIO To Deliver An AI Growth Recipe". Forbes. Retrieved 12 January 2020.
  25. ^ "The Kraft Heinz Company". www.kraftheinzcompany.com. Archived from the original on 26 July 2019. Retrieved 26 July 2019.
  26. ^ "Kraft Heinz - 3 Year Stock Price History | KHC". MarcoTrends. Archived from the original on 2018-10-27. Retrieved 2018-10-27.
  27. ^ "Kraft Heinz shares fall as appetites wane". BBC News. 22 February 2019. Archived from the original on 23 February 2019. Retrieved 22 February 2019.
  28. ^ "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.
  29. ^ 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[edit]

External links[edit]

Retrieved from "https://en.wikipedia.org/w/index.php?title=Kraft_Heinz&oldid=943455264"