The Evolution of Kraft Heinz Business Strategy: A Closer Look
In the world of packaged food and beverage, Kraft Heinz is a major player that has been around for more than a century. The company’s well-known brands include Kraft, Heinz, and Oscar Mayer, among others. However, in recent years, the company has gone through a significant evolution in its business strategy, which has garnered attention from industry experts and analysts alike. In this article, we take a closer look at the evolution of Kraft Heinz’s business strategy and key takeaways from their recent moves.
Introduction to Kraft Heinz
Kraft Heinz was formed in 2015 when Kraft Foods Group and H.J. Heinz Company merged. The merger created one of the biggest food and beverage companies globally, with over $28 billion in revenue and a portfolio of iconic brands. In the early years, the company’s focus was on achieving cost savings through restructuring and improving operational efficiency.
Shift towards Innovation and Diversification
In recent years, Kraft Heinz has started to shift its strategy towards innovation and diversification. In 2018, the company launched a new platform called Springboard, which is an incubator that supports and develops food and beverage startups. Springboard helps to fuel growth for these startups by giving them access to Kraft Heinz’s resources, expertise, and networks.
Moreover, Kraft Heinz has started to diversify its product portfolio. In 2019, the company acquired Primal Nutrition, a producer of collagen-based nutrition bars and supplements. In the same year, it also acquired the Canadian cheese business of natural food producer, The Kraft Heinz Company. These acquisitions demonstrate Kraft Heinz’s intention to diversify into new categories and expand its reach.
Focus on Sustainability and Social Responsibility
Kraft Heinz has also recognized the importance of sustainability and social responsibility in its business strategy. In 2019, the company launched its first sustainability report, which outlines the company’s commitments and progress towards sustainability goals. The report details the company’s efforts to reduce its environmental footprint and promote sustainable practices across its operations.
Similarly, Kraft Heinz has also taken steps towards corporate social responsibility. In 2018, the company announced a $10 million pledge to nonprofit organization, Rise Against Hunger, to address global food insecurity. Kraft Heinz has also established philanthropic partnerships with organizations such as Feeding America and DraftKings.
Key Takeaways
Kraft Heinz’s recent business strategy evolution has several key takeaways for industry professionals. Firstly, the company has recognized the importance of innovation and diversification in expanding its portfolio and reaching new customers. Secondly, Kraft Heinz has acknowledged the significance of sustainability and social responsibility and has taken steps towards making a positive impact. Lastly, the company’s investments in Springboard and partnerships demonstrate its commitment to creating a more collaborative and supportive industry ecosystem.
Conclusion
Kraft Heinz’s evolution in its business strategy towards innovation, diversification, and sustainability highlights the importance of adapting to changing market needs and consumer preferences. The company’s focus on incubating startups, diversifying its product line, and nurturing social responsibility, provide valuable insights for industry professionals. As a giant in the food and beverage industry, Kraft Heinz continues to set the bar high for innovation, sustainability, and social responsibility and will continue to be a leading player in the years to come.
