Intro to Kraft-Heinz

Kraft Heinz is an American multinational company created in 2015. This was the year when Kraft and Heinz joined forces through a merger. Kraft and Heinz have different products in their catalog which include condiments and sauces dairy, meats, frozen foods, coffee, appetizers, nuts, and many more. Making it a consumer staples sector with targets a variety of food products.

Business Model: The operating Model plan was implemented in 2020 with a new plan whose main goal is constant growth. The plan is based on five different pillars which are: People with Purpose, Consumer Platforms, Ops Center, Partner Program, and Fuel Our Growth. Through this plan, KHC is looking for emerging possibilities in international markets where an opportunity appears and it's a great move toward gaining popularity in different international markets. For example, in December 2021 KHC bought an 85% stake in a Germany-based spices company which will most likely be a huge asset for the German market. By doing so they are expanding their brand and growing more and more in different economies and markets. 

Key Competitors:  KHC is in a very competitive sector, the consumer staples, a sector with a lot of giant firms that can be direct competitors of KHC. Some of the most important rivalries are Lamb Weston (LW), General Mills (GIS), UNILEVER(UL), Kenvue (KVUE), and CORTEVA (CTVA).

Major Customers: KHC sells to some of the biggest hospitality franchises in the world. Some of them are Hyatt Hotels, Costco, H World, Marriott, McDonald's, Walmart, and Whole Foods. However, they also sell to many of their competitors such as General Mills, Proctor and Gamble, Hershey, and Pepsico. One of its most important customers is Costco, a huge firm that will make it easier for KHC to distribute its products and make them reach more and more people.

Major Suppliers: KHC has around 5550 suppliers with both food and packaging. Most of the products that they sell are produced from raw materials that they purchase and then they manufacture most of the products. However, they still have a lot of suppliers and some of the most important suppliers are third-party independent companies that supply them with the main commodities that they will need to produce some of their main selling products. They also have other suppliers, for coffee beans and commodities. The strategy to find the best pricing for the supplies is made by the risk management team which uses a risk strategy to analyze which markets are the most affordable at the moment since many of the products needed are commodities the price of these commodities fluctuates a lot through the spawn of the year. A risk management strategy employs a safer and better way of finding the best possible option at the moment.

Similarities and Differences with Competitors: Some of the main similarities between KHC and competitors such as General Mills and Unilever are the supply chain of products they have. Most of these consumer staples companies have a lot of raw materials that are commodities and have a price fixed to the supply and demand curve. In terms of competition, the brand that obtains the best opportunities on these commodities is the one who is going to be in more in the money. One of the differences KHC has is its unique growth strategy and globalization of its brand, they bet a lot more in the international markets than other US-based brands. With its operating model, it obtains and retains clients from foreign markets which helps it obtain more presence outside the states.

Long Run Changes: KHC is expecting genuine growth throughout the coming years. With the new quick service restaurant service and its newly incorporated sales channel: schools. They are expected to make the industry grow sales by approximately 5% on a global level. Making this a long-term influx of cash that will improve sales and make it possible to obtain 2 billion in sales for the year 2027. KHC is also improving their Go To Market Model which will help them enter new markets and will also help accelerate growth in the upcoming years.