Kraft Heinz Co (NASDAQ: KHC) detailed on Tuesday a new strategic transformation plan that aims to cut costs by approximately $ 2 billion through 2024.
Operative model: At the heart of Kraft Heinz’s transformation is a new operating model with five elements, including:
- Reaffirm employees as the most important asset;
- Portfolio reduction from 55 individual categories to six consumer-oriented platforms;
- Create a new supply chain that is faster, more adaptable and offers greater visibility;
- Development of new strategic partnerships; is
- Reinvest efficiency gains to better fuel growth.
Long-term financial goals: Kraft has set a number of long-term financial goals as part of its transformation. These include organic growth in net sales of 1
Changing the “mindset” Previous mistakes have resulted in Kraft losing market share in key categories in favor of low-priced store brands. The company recorded $ 2.9 billion in writedowns in July after reducing the value of its assets by more than $ 16 billion last year.
Kraft’s new goals stem from management’s awareness that previous decisions were “too short in nature,” Kraft CEO Miguel Patricio told The Wall Street Journal. The company is now “changing this mentality”.
Kraft stock was trading around $ 32.12 per share at the time of publication.
A look at Berkshire Hathaway’s first 9 appearances for Warren Buffett’s 90th birthday
This analyst likes Kraft Heinz stock and its 40% discount for colleagues
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.