Kraft Heinz's new chief executive, Steve Cahillane, has said shoppers are "literally running out of money" as the company shifts its focus to affordability. The packaged food giant had been considering a break-up but has instead reversed course, convincing the board to invest $600m in the business.
Central to the strategy is making products more accessible, including lowering prices on items that have become too expensive, expanding promotional deals and introducing smaller pack sizes. Cahillane told The Wall Street Journal that offering the right product at the right time had never been more important.
Kraft Heinz, which owns more than 200 brands including Philadelphia, Oscar Mayer, Lunchables and Capri Sun, is reviewing each item against rivals and own-label products. In some cases, such as Capri Sun Hydrate, the company is avoiding charging a premium for added benefits to remain competitive.
The company is also addressing meat products, described as a "leaky bucket", by improving packaging to make cold cuts easier to reseal and longer-lasting.
Cahillane warned that fresh global conflicts, including the war in Iran, could add inflationary pressure. The grocery industry is already struggling as years of price rises have hit sales volumes. He said another wave of inflation was unwelcome but that the company had to be prepared.
