Tag Archives: Kraft Heinz

Kraft Heinz Sells Natural Cheese Business

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The Kraft Heinz Company is selling its Natural, Grated, Cultured and Specialty cheese businesses to a U.S. affiliate of Groupe Lactalis for a purchase price of $3.2 billion USD.

The proposed transaction is expected to close in the first half of 2021, subject to regulatory review and approval.

The transaction includes Kraft Heinz’s Natural, Grated, Cultured and Specialty cheese businesses in the U.S., Grated cheese business in Canada, and the entire International Cheese business outside these two countries, including the following brands: Breakstone’s, Knudsen, Polly-O, Athenos, Hoffman’s, Cracker Barrel in the U.S. only, and outside the U.S. and Canada only, Cheez Whiz.

In addition, Kraft Heinz will partner with Groupe Lactalis on a perpetual license for Kraft in Natural, Grated and International cheeses and Velveeta in Shredded and International cheeses.

Kraft Heinz will retain the Philadelphia Cream Cheese, Kraft Singles, Velveeta Processed Cheese and Cheez Whiz Processed Cheese businesses in the U.S. and Canada, the Kraft, Velveeta and Cracker Barrel Mac & Cheese businesses worldwide, and the Kraft Sauces business worldwide.

“We believe these cheese and dairy businesses will thrive in the hands of a global dairy company like Groupe Lactalis,” said Kraft Heinz CEO Miguel Patricio. “At the same time, the transaction will enable us to build sustainable competitive advantage in businesses where we have stronger brand equity, greater growth prospects and can use our manufacturing scale and consumer-based platforms approach. This is a great example of agile portfolio management at work.”

As outlined in the new Kraft Heinz operating model announced earlier today, platform roles will help guide resource allocation and investment decisions. Kraft Heinz will focus on growth areas and take strategic action where appropriate. This will help to accrete the Company’s growth profile, enhance strategic focus, and create shareholder value.

Under the terms of the agreement, Kraft Heinz will sell production facilities located in Tulare, Calif.; Walton, N.Y.; and Wausau, Wis., and a distribution center in Weyauwega, Wis. These facilities and their employees will continue to operate in ordinary course. Approximately 750 employees will be transferred from Kraft Heinz to Groupe Lactalis.

The cheese businesses being sold contributed approximately $1.8 billion USD to Kraft Heinz’s net sales for the twelve months ended June 27, 2020. The transaction valuation represents an approximate 12x multiple of LTM Adjusted EBITDA for the standalone business. Kraft Heinz expects to use post-tax transaction proceeds primarily to pay down debt.

© 2020 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 indiv

Kraft Heinz Appoints Carlos Abrams-Rivera As New U.S. Zone President

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As The Kraft Heinz Company continues to rebuild its business momentum with a focus on driving business growth through consumer-first marketing, innovation and people development, CEO Miguel Patricio today announced that Carlos Abrams-Rivera will join his Senior Leadership Team as the new U.S. Zone President.

Effective Feb. 3, 2020, Abrams-Rivera will lead all U.S. business operations, the company’s largest business.

Since officially stepping into the CEO role in July 2019, Patricio also has served as interim President of the U.S. Zone, in addition to his global duties.

“The U.S. represents the majority of our company’s overall business, so this is an enormously important role. I have every confidence that Carlos is the visionary leader we need to drive the U.S. business forward at this moment of transformation,” said Patricio. “Carlos has successfully implemented a strategic approach to reinvigorating brands and has a strong track record of growing businesses with a consumer-first focus to consistently drive strong business results.”

“I am honored to step into the role of U.S. Zone President and look forward to working closely with Miguel and the strong, capable senior leaders he’s assembled at Kraft Heinz,” said Abrams-Rivera. “I’m also very excited to bring my consumer insights passion to drive growth for so many world-class brands, many of which are already very familiar to me.”

A native of Puerto Rico, Abrams-Rivera, 52, will join the company after a successful career spanning more than two decades at companies including Campbell Soup Company, Mondelēz International, and Kraft Foods.

Abrams-Rivera joined Campbell in 2015 and most recently served as Executive Vice President and President, Campbell Snacks, a new division that represents nearly 50 percent of Campbell’s annual sales.

Previously, Abrams-Rivera was President of Campbell’s Pepperidge Farm subsidiary, where he improved the results of this iconic business, driving consistent profitable growth.
His roles at Mondelēz International from 2012-2015 included President of Gum & Candy for Mondelēz Latin America; President, Mondelēz Mexico; Senior Vice President, Global Beverages; and Senior Vice President, Marketing and Strategy for Developing Markets.

Abrams-Rivera began his career at Kraft Foods and held numerous roles from 1998 to 2012, including Senior Vice President, Marketing and Strategy for Developing Markets; Vice President, Nabisco Savory Snacks; and Vice President, Global Biscuits Brands. He also led the development of iconic brands in Cheese, Enhancers, Frozen Pizza, and Oscar Mayer businesses.

© 2020 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.

Bernardo Hees Out, Miguel Patricio In As Kraft Heinz CEO

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The Kraft Heinz Company has announced that the Company’s Board of Directors has appointed Miguel Patricio as Chief Executive Officer effective July 1, 2019.

Mr. Patricio will succeed Bernardo Hees, who will remain CEO through June 30, 2019, to ensure a seamless transition.

“Miguel is a proven business leader with a distinguished track record of building iconic consumer brands around the globe, driving top-line revenue growth through a focus on consumer-first marketing, innovation, and people development,” said Alex Behring, Chairman of Kraft Heinz’s Board of Directors.

“I want to personally thank Bernardo Hees for leading the Company through its first phase,” said Marcel Herrmann Telles, a member of Kraft Heinz’s Board of Directors. “I’ve worked with Miguel over the course of the past 20 years, and he is a natural business leader. From attracting and nurturing the best talent to leading the turnaround of the AB InBev China business into the phenomenal success it is today, Miguel has one of the best brand-building minds in the industry.”

A native of Portugal, Mr. Patricio will join the Company after a successful career spanning two decades at Anheuser-Busch InBev (AB InBev), where he served as part of the Executive Leadership team in various positions, driving organic growth and industry-leading margins.

At AB InBev, Mr. Patricio served as the Global Chief Marketing Officer from 2012 to 2018. In this role, he helped develop and implement a strategic playbook for global brands Corona, Budweiser and Stella Artois, accelerating organic sales growth to high single digits. This represented more than one-third of AB InBev’s organic growth and accounted for more than 20 percent of AB InBev’s 2018 year-end global revenues. In his final year as chief marketer, AB InBev was the most awarded brand owner at Cannes Lions 2018, the global benchmark for effective creative marketing communications.

Prior to that, he was AB InBev’s President of Asia Pacific from 2008 to 2012 and President of North America from 2006 to 2008, providing him with deep experience in growing businesses in developed and emerging markets.

As President of Asia Pacific, Mr. Patricio set the foundation for the growth of the China business by defining a long-term strategy focusing on the premium market, growing Budweiser to become the leading brand in China, and expanding the growth of local brands such as Harbin. This led to the transformation of AB InBev Asia Pacific, which grew from revenues of $1 billion in 2008 to $2.7 billion in 2012, making it the number one beer company in China. Asia Pacific now represents approximately 15 percent of the company’s global revenue and 18 percent of global volumes.

Prior to AB InBev, Mr. Patricio has worked at other consumer companies including Philip Morris, The Coca-Cola Company and Johnson & Johnson in Latin America, New Jersey, and Georgia.

“Kraft Heinz is an incredible company with iconic brands that are loved around the world,” Mr. Patricio said. “It will be a privilege and an honor to lead such a talented group of employees as we focus on the consumer to capitalize on the growth opportunities that exist in the rapidly evolving food industry.”

“I would like to thank Bernardo personally, and on behalf of the Board, for his many contributions to Kraft Heinz over the last six years,” Mr. Behring added. “He helped transform the food industry by leading the acquisition of Heinz in 2013 and the merger of Kraft and Heinz in 2015. Under Bernardo’s tenure, Kraft Heinz achieved industry-leading margins and sales performance in line with its U.S. peers, developed an organization with best-in-industry quality standards, and built in-house capabilities for category management, including revenue and assortment management. We appreciate his contributions.”

“It has been an honor to serve as CEO of Kraft Heinz and to see it through its transformation over the last six years,” said Mr. Hees. “I have confidence that Miguel and the team will take Kraft Heinz to new heights.”

© 2019 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

Kraft Heinz ‘s Evolv Ventures Picks GrubMarket as its First Investment

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Kraft Heinz’s Evolv Ventures, the $100 million venture fund backed by the prepared foods company, has announced GrubMarket as its first investment.

GrubMarket is a platform that sources local food directly from producers and delivers it directly to businesses and consumers. Terms of the agreement were not released.

“We’re excited to invest in GrubMarket, a platform that is disrupting the food wholesale market,” said Steve Sanger, General Partner of Evolv Ventures. “GrubMarket plans to grow its presence and product offerings through both geographic and product expansion. Evolv Ventures is pleased to support its innovative founders.”

Since Evolv Ventures announced the formation of the fund in October 2018, the fund has quickly established itself by hiring an experienced team of investors and entrepreneurs and is actively working and investing with leading companies in the space, such as GrubMarket.

Evolv Ventures Capital Fund invests in emerging tech companies transforming the food industry. The venture fund aims to accelerate Kraft Heinz’s exposure to emerging technologies and businesses and leverage Kraft Heinz’s position in the industry to become the most value-added investor in the space.

© 2019 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 perfo

Kraft Heinz’s Springboard Announces Five More Companies It Hopes Will Shape the Future of Food

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Kraft Heinz’s Springboard, a brand innovation platform launched by the company in 2016 to nurture, scale, and accelerate growth of disruptive brands, has announced its second Incubator Program class.

The program was created to help nurture and develop the next generation of food & beverage brands, while staying close to entrepreneurs, new ideas and consumer trends.

The second Incubator class continues the vision and includes Blake’s Seed Based, BRAMI, Ka-Pop! Ancient inGRAINed Snack Co™, Origin Almond®, and Tiny Giants.

All Incubator teams fall strongly within at least one of the Springboard committed growth pillars: Natural & Organic, Specialty & Craft, Health & Performance, and Experiential brands. Over the course of the next 16 weeks, the selected startups will participate in a dynamic program composed of learning, funding, infrastructure access, and mentorship in Chicago, IL.

Springboard is also announcing the application period for the third incubator class is open now until June 14th for the fall program which will take place August 5th through November 22nd.

Keep an eye out for:

Growing up with a deathly nut-allergy, Founder, Blake Sorensen, was frustrated with the lack of allergen-free snack options on the market. So, he began to make bars in his kitchen, using seeds instead of nuts. Blake quickly realized people with and without food allergies enjoyed them. Blake’s Seed Based mission is to make seed based, Top 8 Allergen-Free snacks accessible to everyone. Blake’s Seed Based products are not only delicious and safe for most eat, but they also donate a bar to a school in need for every box purchased. All great reasons to try Blake’s today!
https://www.blakesseedbased.com/

In their Brooklyn test-kitchen, BRAMI reimagined lupini beans, a fresh legume snack beloved in the Mediterranean since Ancient Roman times. BRAMI beans are packed with plant protein and fiber with a fraction of the calories, carbs, fat and sugar of other snacks, so you can satisfy your hunger without compromising your diet. Marinated and packaged fresh out of the pickling barrel, BRAMI offers one of the few shelf-stable snacks that isn’t baked, dried or fried, and something totally differentiated to the growing functional snack category.
https://bramisnacks.com/

Ka-Pop! Ancient inGRAINed Snack Co™ has the mission to always be tasty, nutritious, and satisfying. Founder, Dustin, was tired of compromising taste for boring, empty, better for you snacks, so he created his own. Ka-Pop! is delicious and powered by ancient grains to bring fun and nutrition together. Ka-pop! wants you to save your snack time from boring “good for you” snacks that don’t deliver on taste and to replace those empty calories with protein, fiber, omega-3s, potassium, and vitamins. Take that regular snacks, and try Ka-Pop!
https://kapopsnacks.com/

Origin Almond® believes the first step to better health is the reduction of excess sugars, especially the hidden sugars found in perceived healthy foods such as fruit juices. Founder, Jake Deleon, had a unique solution: Juice almonds instead of sugary fruits! Origin Almond® uses cold-press technology to extract the liquid essence of almonds. This Cold-Pressed Almond Juice offers the fresh & lightly sweetened taste of premium fruit juices minus the excess sugar & carbs. Each flavor contains as low as 1g of sugar per bottle and is infused with a rainbow of superfoods and adaptogens to provide added functional benefits. Love juice again with Origin Almond® and see why almonds make for better juice! Origin Almond® is a certified Minority Business Enterprise (MBE).
https://www.originalmond.com/

Danielle Calabrese, mom of two and CPG entrepreneur, enlisted help from friend and Chef, Gregg Drusinsky to create a delicious and sustainable plant based snack brand for future-forward kids and parents. Together, they built a fun and empowering brand to fuel the superheroes of tomorrow. Their first product is a plant based yogurt that is certified organic and non GMO with no added sweeteners. Tiny Giants believes that healthy bellies equals happy kids and they are on a mission to change the way kids snack.
https://tinygiantsfood.com/#shopify-section-1534600654784

“We had an incredibly competitive group of applicants. All five companies in our second Incubator class offer delicious products that cater to the better-for-you offerings consumers are demanding,” said Kelly Reinke, Springboard Incubator Lead. “Springboard exists to help shape the future of food, and we are confident our next class does just that.”

© 2019 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 Sells Off Indian Brands

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The Kraft Heinz Company completed the sale of Indian brands Complan, Glucon-D, Nycil and Sampriti to Zydus Wellness Limited and its affiliates.

“The sale of this niche business fits into our overall global growth strategy and our focus on investing in and growing brands within our core categories, and where we see a clear path to sustainable competitive advantage,” said Bernardo Hees, Chief Executive Officer of Kraft Heinz.

Under the terms of the agreement, Kraft Heinz sold to Zydus Wellness Limited and an affiliate 100% of its equity shares in Heinz India Private Limited, which is comprised of Complan, Glucon-D, Nycil and Sampriti brands, and two manufacturing facilities, with approximately 760 employees associated with these brands and operations.

© 2019 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 Acquisition of Primal Nutrition

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The Kraft Heinz Company has completed its acquisition of Primal Nutrition, LLC, makers of Primal Kitchen branded products.

Primal Kitchen is a young, vibrant, better-for-you brand primarily focused on Condiments, Sauces and Dressings including Mayonnaise, Salad Dressings and Avocado Oil, with growing product lines in Healthy Snacks and other categories.

Primal Kitchen will join Kraft Heinz under Springboard, which is Kraft Heinz’s dynamic platform created to partner with founders and brands that will disrupt the food industry.

Leveraging Kraft Heinz’s assets and infrastructure, Primal Kitchen will operate as an autonomous company and continue to be led by its current leadership team. Its headquarters will remain in Oxnard, California.

“Primal Kitchen is an authentic, premium and growing brand that complements our core Condiments & Sauces categories,” said Paulo Basilio, U.S. Zone President for Kraft Heinz. “We are excited to partner with the Company’s strong team to drive growth across multiple categories and reach more consumers looking for these amazing products.”

Mark Sisson, Co-Founder of Primal Kitchen said, “Kraft Heinz recognizes the value of our Primal Kitchen mission and the consumer demand for it. This philosophy will stay with us as we leverage the resources of this new partnership to reach millions more of the consumers who have been seeking products like ours for years.”

© 2019 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.

Hedge Fund Opposes Kraft Heinz’s Campbell’s Bid

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Unhappy with its large position in Kraft Heinz, Czech Republic-based hedge fund Krupa Global Investments is threatening to wage a proxy fight over a possible Kraft Heinz bid for Campbell Soup Co.’s international business.

Kraft Heinz and Mondelez, along with private equity firms Bain Capital LP, KKR and FinTrek Capital Hong Kong Co., are reportedly the approved bidders for an auction that will see the winner gain Campbell’s Australian cookie brand Arnott’s and its Danish baked-snacks maker Kelsen Group.

“This auction process may be great for Dan Loeb and Campbell’s Soup but it does nothing for Kraft Heinz and its shareholders,” said KGI Chairman Pavol Krupa in a statement. “Campbell’s Soup is selling its international assets for a reason thus we are concerned that these assets could be a drain on Kraft Heinz’s profitability and add to its debt. We strongly oppose Kraft Heinz’s participation in this auction and will organize a strong campaign against it if necessary.”

KGI has been campaigning for an $80/share buyout of public investors by Warren Buffett and Berkshire Hathaway.

KGI cites a recent piece by Daniel Thurecht in Seeking Alpha backing up KGI’s $80/share valuation published on November 20, 2018 and a piece by Lauren Hirsch in CNBC underscoring the benefits of large legacy consumer companies going private published on October 27, 2018.

“We do not believe Warren Buffett wants his career tarnished by the embarrassment of losing Kraft Heinz investors 40 percent of their investments from 2015 prices. We are liaising with Kraft Heinz management, 3G Capital and Berkshire Hathaway to figure out a constructive solution that will benefit Berkshire Hathaway, 3G, Kraft Heinz shareholders, and the Kraft Heinz brand. We believe such a resolution is possible and will not rest until one is achieved,” added Krupa.

© 2018 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 Launches Tech Venture Fund Evolv Ventures

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Kraft Heinz has launched Evolv Ventures, a venture fund that will invest in emerging tech companies transforming the food industry.

Kraft Heinz has committed up to $100 million to Evolv Ventures and brought on venture investor Bill Pescatello to lead the fund.

“New technological innovations in the food industry create endless new opportunities to strengthen business models,” said Bernardo Hees, Chief Executive Officer at Kraft Heinz. “Through Evolv Ventures, we will work with tomorrow’s most innovative founders and companies in the space, and use the full resources of Kraft Heinz to help them succeed.”

Pescatello brings more than a decade of successful venture investing experience at two leading venture funds to Kraft Heinz. Most recently, he was a Partner at Lightbank, the Chicago venture capital fund founded by serial entrepreneurs Eric Lefkofsky and Brad Keywell, and was also a founding member of the Peacock Equity Fund, a $250 million global capital fund of GE Capitaland NBCUniversal.

While Kraft Heinz has a long history of developing iconic brands including Philadelphia, Heinz and Oscar Mayer, the new fund will accelerate the company’s exposure to emerging technologies and businesses, and better leverage its position in the industry.

“At Evolv Ventures, we will move beyond brands to have a committed first look at our industry’s most promising and disruptive tech-enabled companies,” said Pescatello. “With the insights, data and access available at Kraft Heinz, we look to take full advantage of our unique position and be the foremost value-added investor in the space.”

Evolv Ventures will be based in Chicago.

© 2018 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.