Category Archives: Kraft Heinz

Kraft Heinz Tests Paper-Based, Renewable and Recyclable Ketchup Bottle

HEINZ, maker of the world’s favorite ketchup and beloved condiments, is teaming up with Pulpex to develop a paper-based, renewable and recyclable bottle made from 100 percent sustainably sourced wood pulp.

Innovating its iconic ketchup bottle, HEINZ is the first sauce brand to test the potential of Pulpex’s sustainable paper bottle packaging for its range of world-famous condiments.

HEINZ, maker of the world’s favorite ketchup and beloved condiments, is teaming up with Pulpex to develop a paper-based, renewable and recyclable bottle made from 100 percent sustainably sourced wood pulp. (Photo: Business Wire)

For Kraft Heinz, this collaboration is the latest step in its journey to reduce its environmental footprint. It progresses the Company’s sustainable packaging ambitions, in that it aligns with its goal to make all packaging globally recyclable, reusable or compostable by 2025. It is also an innovation that will help Kraft Heinz achieve net zero greenhouse gas emissions by 2050.

HEINZ and Pulpex are developing a prototype to test how the cutting-edge innovation could be used for HEINZ Tomato Ketchup bottles and other packaging formats in years to come. Pulpex’s current data indicates the carbon footprint of Pulpex bottles is materially less than glass and plastic on a bottle-by-bottle basis. Once used, they are also expected to be widely and readily recyclable in paper waste streams.

“Packaging waste is an industrywide challenge that we must all do our part to address,” said Kraft Heinz CEO Miguel Patricio. “That is why we are committed to taking steps to explore sustainable packaging solutions across our brands at Kraft Heinz, offering consumers more choices. This new HEINZ bottle is one example of how we are applying creativity and innovation to explore new ways to provide consumers with the products they know and love while also thinking sustainably.”

The next step in the process will involve prototype testing to assess performance before testing with consumers and bringing the bottle to market.

“We hope to bring this bottle to market and to be the first sauce brand to provide consumers this choice in their purchasing decisions, as many consumers today are looking for more sustainable packaging options,” said Rashida La Lande, EVP & Global General Counsel and Chief Sustainability and Corporate Affairs Officer at Kraft Heinz. “We’re eager to continue discovering more sustainable packaging for our beloved and iconic brands.”

“We are delighted to work with HEINZ to bring our patented packaging technology to such a famous name in food and are excited about the potential of this collaboration,” said Scott Winston, Pulpex CEO. “We believe that the scope for paper-based packaging is huge, and when global household names like HEINZ embrace this type of innovative technology, it’s good news for everyone – consumers and the planet.”

The pulp-based bottle would become the newest option available to HEINZ Tomato Ketchup fans, joining the recyclable HEINZ iconic glass bottle and plastic bottle, as well as plastic squeeze bottles with their 30 percent recycled content (available only in the E.U.) and 100 percent recyclable caps.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Kraft Heinz Earnings Show Strong Gains in Q1

The Kraft Heinz Company has announced that its Q1 2022 results had a 37.5 percent increase in net income versus the year-ago period to $781 million.

The results were primarily driven by lower non-cash impairment losses in the current year period, lower interest expense primarily due to debt extinguishment costs in the prior year period, and favorable changes in other expense/(income).

Details for Q1:

Diluted EPS was $0.63, up 37.0 percent versus the prior year, driven by the net income/(loss) factors discussed above.

Adjusted EPS was $0.60, down 16.7 percent versus the prior year, primarily driven by lower Adjusted EBITDA, including a negative $0.08 impact from divestitures, and higher taxes on adjusted earnings that more than offset lower interest expense versus the prior year period.

Net sales decreased 5.5 percent versus the year-ago period to $6.0 billion, including a negative 11.2 percentage point impact from divestitures net of acquisitions and a negative 1.1 percentage point impact from currency.

Organic net sales increased 6.8 percent versus the prior year period. Pricing was up 9.0 percentage points versus the prior year period with growth across each reporting segment that was primarily driven by increases to mitigate rising input costs in retail and foodservice channels. Volume/mix declined 2.2 percentage points versus the year-ago period reflecting supply constraints that were partially offset by strong demand for products in retail and a continued recovery in foodservice channels.

Net cash provided by operating activities was $486 million, down 40.0 percent versus the year-ago period, primarily driven by lower Adjusted EBITDA and higher cash outflows for inventories primarily related to stock rebuilding and increased input costs. These impacts were partially offset by lower cash outflows for interest primarily due to prior year reduction of long-term debt and lower cash outflows for variable compensation in 2022 compared to 2021.

Free Cash Flow was $272 million, down 53.4 percent versus the comparable prior year period due to the lower net cash provided by operating activities that was partially offset by lower capital expenditures versus the prior year period.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Kraft Heinz Acquires Brazilian Food Company Hemmer

(BRK.A), (BRK.B)

The Kraft Heinz Company, the owner of the Heinz and Quero brands in Brazil, has completed its acquisition of a majority stake in Companhia Hemmer Indústria e Comércio, a Brazilian food company focused on condiments and sauces, after the deal was approved without restriction by CADE (Brazil’s Administrative Council for Economic Defense), Brazil’s antitrust body.

The deal was first announced in September 2021, and CADE was notified in November 2021.

The association with Hemmer, a 107-year-old company based in Blumenau, Santa Catarina, will expand Kraft Heinz’s International Taste Elevation platform with its focus on condiments and sauces and will also support its strategy to increase its presence in emerging markets.

The acquisition aims to accelerate the growth of both companies, whose brands and portfolios are complementary. Hemmer will also benefit from Kraft Heinz’s distribution network and go-to-market model in Brazil, including in the growing foodservice channel.

“This is an important move for our International growth strategy, which is focused on Taste Elevation, our portfolio of high-quality, delicious products that enhance the taste of food,” says Rafael Oliveira, EVP & President, International Markets at Kraft Heinz.

“We are very excited about the completion of the deal, which furthers Kraft Heinz’s plan to become one of the largest food players in the country, expanding our selection for our consumers,” said Fernando Rosa, Managing Director of Brazil at Kraft Heinz. “This combination represents a tremendous growth opportunity for both companies, which are both built on the pillars of tradition, innovation, quality, superior ingredients, and flavor.”

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Kraft Heinz Names CEO Miguel Patricio as Chair of the Board

(BRK.A), (BRK.B)

The Kraft Heinz Company has announced that the Board of Directors intends to appoint Chief Executive Officer Miguel Patricio as Chair, subject to his re-election at the Kraft Heinz 2022 Annual Meeting of Stockholders.

Current Chair of the Board of Directors Alexandre Behring will retire following the end of his term at the 2022 Annual Meeting.

“We are very pleased with the progress experienced by the Company in advancing its strategic plan during the past few years under Miguel’s leadership and see his elevation to Chair as a natural progression, providing a continuation of strong and consistent stewardship to guide the Company well into the future,” said Alex Behring, Kraft Heinz Board Chair. “I have enjoyed my time working alongside Miguel, the Board, and the Kraft Heinz leadership team.”

“Alex’s contribution to Kraft Heinz has been invaluable and his impact will continue to be felt for many years,” said Miguel Patricio, Chief Executive Officer and Director. “I am truly honored at the opportunity to succeed him as Chair.”

“On behalf of Berkshire Hathaway, I would like to thank Alex for his dedication, leadership, and service to Kraft Heinz. Alex and I have worked closely together since 2013, when we both served on the H.J. Heinz Board, and I know our relationship will extend well into the future,” said Greg Abel, member of the Kraft Heinz Board of Directors and Vice Chair, Non-Insurance Operations of Berkshire Hathaway. “We look forward to working with Miguel as Chair as his vision for the Company’s transformation continues to move the business forward.”

The Company also announced that the Board of Directors has nominated James Park of Fitbit at Google to stand for election at the Kraft Heinz 2022 Annual Meeting.

“I am also thrilled by the prospect of adding James Park to our Board,” Patricio said. “Technology and digital capabilities are extremely important elements of our continuing business strategy. His background and experience will be especially valuable to Kraft Heinz and the Board as we begin the next phase of our transformation.”

James Park, 45, is a technology entrepreneur who co-founded Fitbit, Inc., a connected health and fitness company, that was acquired by Google in January 2021. Mr. Park is Vice President and General Manager, Fitbit at Google. He previously served as Chief Executive Officer, President, and member of the board of directors of Fitbit since 2007, and as chairman of the board of directors from 2015, until its acquisition. He is a leader in the technology industry with a strong track record of ideating and operating successful technology companies. Park was also the co-founder of Wind-Up Labs, Inc., an online photo sharing company acquired by CNET Networks, Inc. in 2005, and Epesi Technologies, Inc. In 2015, he was named to Fortune magazine’s 40 Under 40, an annual ranking of the most influential young people in business.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no gu

Berkshire Hathaway to Swap Board Member on Kraft Heinz Board of Directors

(BRK.A), (BRK.B)

The Kraft Heinz Company has announced that Alexandre Van Damme, director nominee of Berkshire Hathaway, will retire from the Company’s Board of Directors following the end of his term.

Berkshire Hathaway has indicated that it plans to nominate Alicia Knapp, President and CEO of BHE Renewables, to fill Mr. Van Damme’s vacancy at the Kraft Heinz 2022 Annual Meeting of Stockholders.

“Berkshire Hathaway is delighted to nominate Alicia to the Board of Kraft Heinz – she has shown tremendous leadership during her 20-plus years at Berkshire Hathaway Energy,” said Greg Abel, member of the Kraft Heinz Board of Directors and Vice Chair, Non-Insurance Operations of Berkshire Hathaway. “We are thrilled to add Alicia’s perspective to Kraft Heinz and believe that her experience will be especially relevant and valuable to the Board and the Company’s environmental, social and governance strategy. Additionally, I would like to thank Alexandre for his many important contributions to the Board over the past four years.”

In her role at BHE Renewables, Ms. Knapp, 43, leads Berkshire Hathaway Energy’s unregulated development and commercial management of renewable projects. BHE Renewables owns solar, wind, geothermal, natural gas and hydroelectric projects that produce energy for both the wholesale market and for customers under long-term power purchase agreements.

Ms. Knapp has earned a reputation as a strategic leader with significant operational, risk management and financial acumen. Before her current role, she served as Vice President of Renewable Generation for MidAmerican Energy, where she was responsible for renewable generation operations and electric trading. Prior to this role, Ms. Knapp served as Vice President of Gas Delivery at MidAmerican Energy, where she managed a natural gas business serving more than 750,000 customers, and also General Manager of Project Development at BHE Renewables, where she managed the development and construction of wind and solar farms. She has been with the Berkshire Hathaway Energy family of businesses since 2001 and held roles in risk management, gas trading, and nuclear and renewable project management earlier in her career.

“It is an honor to be nominated by Berkshire Hathaway to the Kraft Heinz Board of Directors,” said Knapp. “I look forward to the opportunity to add value through this position on the Board and support the Company in its impressive transformation.”

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Kraft Heinz Finalizes Acquisition of Just Spices

The Kraft Heinz Company has completed its acquisition of an 85% stake in Germany-based Just Spices GmbH.

The remaining 15% ownership stake has been retained by Just Spices’ three founders, who will continue on with the company and focus on driving the business and its international growth.

The proposed deal was first announced on Dec. 10, 2021.

Launched in 2014, Just Spices is an innovative start-up, trailblazing the high-growth taste elevation category with annual sales of approximately €60 million. Its 170-plus product portfolio includes spice blends, salad dressings, easy-to-prepare “In Minutes” blends, and organic offerings for diverse meal occasions ranging from breakfast and light snacks to salads and baking, with a broad range of savory, sweet, classic, and exotic flavors. Just Spices’ growing business sells approximately 70% of its ready-made and one-step spice blends directly to consumers, with its remaining sales through major grocery retailers both in-store and online in Germany, Spain, Austria, and Switzerland.

“In 2021, we announced four acquisitions to further accelerate our growth agenda and our ambition to be No. 1 in taste elevation around the world,” said Rafael Oliveira, EVP & President, International Markets at Kraft Heinz. “These include our acquisition of a majority stake in Just Spices, along with our intention to acquire a majority stake of the outstanding equity interests in Brazilian food company Hemmer, our investment in BR Spices in Brazil, and our acquisition of Assan Foods in Turkey. With Just Spices, we will leverage Kraft Heinz’s scale and agility to accelerate the business in the fast-growing taste elevation market beyond the company’s current German base and its recent market entries in Spain, Austria, and Switzerland. We also see tremendous potential to further strengthen and enhance Kraft Heinz’s own direct-to-consumer operations and go-to-market expansion.”

“We are extremely excited by the expansion opportunity that comes from combining Just Spices’ innovation and brand power with the Kraft Heinz team and the scale and knowledge of international markets they bring to the table,” said Florian Falk, Just Spices CEO and one of the company’s three founders.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Kraft Heinz Buys Germany-Based Spice Company

(BRK.A), (BRK.B)

The Kraft Heinz Company is acquiring an 85% stake in Germany-based Just Spices GmbH. The remaining 15% ownership stake will be retained by Just Spices’ three founders, who will continue on with the company and focus on driving the business and its international growth.

Launched in 2014, Just Spices is an innovative start-up, trailblazing the high-growth taste elevation category with annual sales of approximately €60 million.

Its 170-plus product portfolio includes spice blends, salad dressings, and easy-to-prepare “In Minutes” blends for diverse meal occasions ranging from breakfast and light snacks to salads and baking, with a broad range of savory, sweet, classic and exotic flavors. Just Spices’ rapidly growing spice revolution business sells approximately 70% of its ready-made and one-step spice blends directly to consumers, with its remaining sales through major grocery retailers both in-store and online in Germany, Spain, Austria, and Switzerland.

Just Spices’ data-driven product innovation has successfully been geared towards the needs of today’s Gen Y and Gen Z consumer, with approximately 1.6 million followers across the company’s social media platforms. Its advanced analytics knowledge has enabled Just Spices to create and identify early consumer trend signals, foster product innovation, understand customer sentiment, and optimize consumer targeting.

“This is a great opportunity to further accelerate our growth agenda by strengthening our ability to anticipate trends in consumer tastes and preferences, as well as our speed to innovate,” said Rafael Oliveira, International Zone President at Kraft Heinz. “We will leverage our scale and agility to accelerate Just Spices’ business in the fast-growing taste elevation market beyond its current German base and its recent market entries in Spain, Austria, and Switzerland. We also see tremendous potential to strengthen and enhance our own direct-to-consumer operations and go-to-market expansion.”

“In the last few years, Just Spices has been further strengthening its successful omni-channel approach, with some of the best-in-class direct-to-consumer analytics in the food space. We are extremely excited by the potential for expansion that comes from combining Just Spices’ innovation and brand power with the Kraft Heinz team and the scale they bring to the table,” said Florian Falk, Just Spices CEO and one of the company’s three founders.

The deal is subject to customary closing conditions, including merger control approval, and is expected to be completed in the first quarter of 2022.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Kraft Heinz to Combine U.S. and Canada Businesses to Form the North America Zone

(BRK.A), (BRK.B)

The Kraft Heinz Company (which is 26.6%-owned by Berkshire Hathaway) will combine its U.S. and Canada businesses to create the North America Zone, which is expected to be effective in the second fiscal quarter of 2022.

The move is meant to advance the global food and beverage leader’s long-term, sustainable growth plans—which were first outlined at its Investor Day event in September 2020—by bringing increased agility to its innovation agenda, operations, and go-to-market approach.

The Company’s U.S. and Canada businesses accounted for approximately 80% of its 2020 consolidated net sales.

In the last 12 months, Kraft Heinz has taken multiple steps to transform its overall growth profile, strategic focus, and financial flexibility, including divesting certain assets in its global cheese and nuts businesses. The Company has also centered its business around a consumer-first approach, significantly investing in its portfolio, digital solutions, customer relationships, and people.

The Company believes the creation of the North America Zone will further fuel Kraft Heinz’s vision to leverage its scale through improved agility for competitive advantage. Structural changes to support the strategic plan are aimed at streamlining and synergizing the U.S. and Canada businesses. This evolved model is expected to help the North America Zone pilot high-value products, processes, and service innovations, backed by the resources of the two countries, while also increasing speed to market.

“As consumer, customer, and employee needs change, we must be in a position to anticipate, adjust, and respond with speed,” said Miguel Patricio, Chief Executive Officer of Kraft Heinz. “Combining our U.S. and Canada businesses—two dynamic Zones—gives us a distinct advantage and will produce faster, more effective results so we can continue investing in our strategic plan and driving sustainable growth. While this is an evolution to our structure, it is part of a broader revolution in how we will work at Kraft Heinz going forward.”

As a result, the following leadership changes are being made:

• Kraft Heinz’s new North America Zone will be led by Carlos Abrams-Rivera, currently U.S. Zone President. Since joining Kraft Heinz in February 2020, Abrams-Rivera has been instrumental in reigniting growth in the U.S. business, the Company’s largest Zone. Abrams-Rivera will assume the title of North America Zone President.

The North America Zone structure will include three commercial business units that will be organized around the Company’s consumer-driven product platforms and geographic needs, including:

• Taste, Meals, and Away From Home will be led by Pedro Navio, currently President of Latin America, and includes the Taste Elevation and Easy Meals Made Better consumer platforms as well as the U.S. foodservice and ingredient businesses

• Fresh, Beverages, and Desserts will be led by Steve Cornell, currently President – Enhancers, Specialty, and Away From Home, and includes the Fast Fresh Meals, Easy Indulgent Desserts, Real Food Snacking, and Flavorful Hydration consumer platforms

• Canada and North America Coffee will be led by Adam Butler, currently President – Kids, Snacks, and Beverages

The Company is also pleased to announce the appointment of Robert Scott as President of Research & Development – North America.

Scott joins Kraft Heinz from Abbott Nutrition where he most recently served as Divisional Vice President of Global Product Development. In this role, he successfully delivered a wide range of product solutions that met the diverse needs of consumers and retailers, as well as led the development of products to support Abbott Nutrition’s medical, institutional, and clinical businesses globally. Prior to Abbott Nutrition, Scott was Vice President of Research & Development- Latin America for The Coca- Cola Company where he delivered consumer-centric product innovations, as well as packaging solutions to support environmental and sustainability goals.

In his new role at Kraft Heinz, Scott will be tasked with leading Research and Development for the Company’s core business, renovation and innovation agendas, and commercialization strategy. His proven success in building Research & Development teams around agile ways of working coupled with his deep understanding of next generation ingredients, packaging innovations, and nutrition makes him uniquely positioned to advance Kraft Heinz’s North America portfolio strategy which is centered around creating more sustainable solutions.

Long-time Company executive Bruno Keller, currently Canada Zone President, will assume the position of President of Latin America, part of the Company’s International Zone.

Navio, Cornell, Butler, and Scott will report directly to Abrams-Rivera under the new structure.

The North America Zone will begin structural transitions in early 2022 with full organizational and financial reporting changes expected to take effect at the start of its second fiscal quarter next year.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Kraft Heinz Completes Purchase of Assan Foods, Expanding Presence in Key Growth Markets

(BRK.A), (BRK.B)

The Kraft Heinz Company has announced it has completed the purchase of Assan Foods from privately held Turkish conglomerate Kibar Holding. The proposed deal was first announced on June 11, 2021.

Assan Foods, headquartered in Istanbul, is a rapidly growing sauces-focused business with local manufacturing facilities in Balikesir and Izmir, Turkey. Assan Foods has been a certified Kraft Heinz production partner since 2019 and offers Kraft Heinz the opportunity to further build its retail and foodservice businesses across Europe, the Middle East, and Africa.

“Assan Foods makes high-quality sauces and tomato products that we believe fit perfectly into our International Zone’s growth strategy focused on Taste Elevation, and expands our presence in a part of the world that holds tremendous long-term opportunity for our company and our brands,” said Rafa Oliveira, International Zone President at Kraft Heinz. “We’re excited to officially welcome Assan Foods employees to the Kraft Heinz table.”

Assan Foods was established in Balikesir in 1998 as a Kibar Holding investment in the food sector and evolved into one of the top producers in the region. Assan Foods manufactures and sells a wide range of products, including tomato paste, ketchup, mayonnaise, and pasta and meat sauces that appeal to a variety of international cuisines. Its products are sold under brands such as Colorado, Kingtom, and Oba, as well as private label.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Kraft Heinz Acquires Brazilian Condiments & Sauces Manufacturer

(BRK.A), (BRK.B)

The Kraft Heinz Company has entered into an agreement to acquire Companhia Hemmer Indústria e Comércio, a Brazilian company focused on condiments and sauces.

The acquisition of Hemmer – a 106-year-old company headquartered in Blumenau, Santa Catarina – is designed to expand consumers’ taste options in Brazil, while supporting Kraft Heinz’s strategy of growing its International Taste Elevation product platform and its presence in emerging markets.

“This acquisition offers us a valuable opportunity to accelerate our international growth strategy centered around Taste Elevation — our portfolio of high-quality products that enhance the taste of food,” said Rafael Oliveira, International Zone President at Kraft Heinz. “Hemmer is a legendary company in Brazil, growing net sales significantly, and will bring a delicious and diverse portfolio of products to Kraft Heinz.”

The combination aims to accelerate the growth of both companies, expanding Kraft Heinz’s presence in Brazil and leveraging its already successful expansion in condiments and sauces. Hemmer will benefit from Kraft Heinz’s distribution network and go-to-market model, including the growing foodservice channel in Brazil.

“In the last few years, Hemmer has been further strengthening itself as a food company synonymous with flavor, quality, and portfolio variety. We are extremely honored by this potential acquisition and the entire expansion potential this negotiation offers by continuing our family history in the region,” said Christian Luef, Hemmer CEO.

The completion of this transaction is subject to regulatory approvals by CADE (Brazil’s Administrative Council for Economic Defense).

The acquisition continues to expand Kraft Heinz’s focus on the international market. In June 2021, Kraft Heinz acquired Assan Foods, a rapidly growing sauces-focused business, from Turkish conglomerate Kibar Holding.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.