On August 4, 2016 Kraft Heinz reported its Second Quarter results for the 2016 Fiscal Year (FY). There were notable items in the Company’s report and in analyst commentary.
Consumer tastes have been shifting over the past few years towards organic and natural ingredients over processed and packaged food. While Kraft Heinz is working to adjust its product portfolio to reflect this shift and to support sales volume, it may acquire a company that helps Kraft Heinz work towards these ends. The company it acquires will also likely have strong brands, a significant international presence and an inefficient cost structure. Mondelez and General Mills have been rumoured as possible acquisition targets.
Kraft Heinz also reported on its “reintegration program.” Included in this program is Kraft Heinz management’s plan to cut 1.5 billion USD in expenses by 2017. This will be accomplished via workforce reductions, plant closures and supply chain enhancements.
Those who will pay the price for this reintegration program are the members who make up IUF’s affiliated unions and other workers who enrich the owners of Kraft Heinz. Please notify the IUF Secretariat of any restructuring or “reintegration” plans with information on where cuts are being made and where work is being sent to enable a coordinated response to any announced cuts and changes.