The Kraft Heinz Company (KHC) Presents at Barclays 17th Annual Global Consumer Staples Conference Transcript

Industry/Company Involved * Company: The Kraft Heinz Company (NASDAQ: KHC) * Industry: Packaged Food Core Points and Arguments 1. CEO Carlos Abrams-Rivera's Perspective on the Current Operating Environment: * Similar to past cycles, such as the 2008 recession, but not as bad. * Focus on providing great food solutions for a growing global population. * Emphasis on the company's strategy of "accelerate, protect, and balance" to thrive in the current environment. * Commitment to investing in marketing, technology, and SG&A despite consumer challenges. * [1][2][3][4][5][6][7] 2. CFO Andre Maciel's Overview of Kraft Heinz's Transformation: * Strategic clarity and focus on organic growth. * Robust operating model with improved efficiency and productivity. * Strong balance sheet with upgraded credit rating and excess cash. * Meritocracy and employee engagement at all-time highs. * [8][9][10][11][12][13][14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43][44][45][46][47][48][49][50][51][52][53][54][55][56][57][58][59][60][61][62][63][64][65] 3. U.S. Retail Strategy: * Focus on value-conscious consumers with 30-40% of the portfolio requiring promotions. * Thoughtful and surgical deployment of promotions to drive growth without sacrificing margins. * Continued investment in marketing, innovation, and renovation to engage consumers. * Expansion of distribution in value-oriented channels like Dollar General and club stores. * [15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43][44][45][46][47][48][49][50][51][52][53][54][55][56][57][58][59][60][61][62][63][64][65] 4. Global Strategy: * Focus on emerging markets with significant growth potential. * Selective approach to market entry and expansion. * Strong performance in key emerging markets like Brazil, Mexico, and Indonesia. * Challenges in China due to softer consumer and industry conditions. * [50][51][52][53][54][55][56][57][58][59][60][61][62][63][64][65] 5. Portfolio Strategy: * Active portfolio management with divestitures and acquisitions. * Focus on taste elevation, ready meals, substantial snacking, and coffee, meat, and cheese categories. * Potential for further portfolio optimization through M&A and partnerships. * [54][55][56][57][58][59][60][61][62][63][64][65] 6. Key Message to Investors: * Significant transformation over the past few years. * Clear strategy, strong balance sheet, and high employee engagement. * Undervalued stock due to the transformation and market perception. * [60][61][62][63][64][65]