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Kraft Heinz will renovate 45 percent of its brand portfolio by the end of this year, and 90 percent by 2022, to boost efficiency in handling the impending inflation.
The inflation is “manageable” for Kraft Heinz's as it’s been in the mid-single digits for its main commodities of cheese, coffee, and meat.
But the company would seek to invest $400 million by the year's end to make operations more efficient, said Carlos Abrams-Rivera, president of the US Zone at Kraft Heinz.
Abrams-Rivera noted that among the efficiencies that Kraft Heinz would be looking at is having more variety in packaging size, which could include larger sizes to bring better value for consumers and smaller ones that are cheaper.
In February, Kraft Heinz sold its Planters nuts unit and other nuts businesses to Hormel Foods for $3.35 billion to focus on other snack brands, like P3 and Lunchables.
It also sold part of its Cheese business to Lactalis for $3.2 billion in an effort to trim less popular products on its lineup.
