Kraft Heinz will realign its operations into three regions—North America; Europe and Pacific Developed Markets; and Emerging Markets—backed by new leadership and a $600 million investment in marketing, sales and R&D. In Q1 net sales rose 0.8% to $6.05 billion while operating income fell 4.3% to $1.1 billion.
Kraft Heinz is overhauling its operating model into three regions—North America; Europe and Pacific Developed Markets; and Emerging Markets—to sharpen focus, streamline resource deployment and drive volume-led growth starting next month.
The company named Nico Amaya president of North America, Marcel Regis head of Emerging Markets, Willem Brandt leader of Europe and Pacific Developed Markets, and Janelle Aydin as global chief procurement and supply chain officer, with two executives transitioning to advisory roles.
In Q1 net sales climbed 0.8% to $6.05 billion while organic sales dipped 0.4%, and operating income decreased 4.3% to $1.1 billion, pressured by higher advertising outlays and inflationary costs in manufacturing and logistics.
CEO Steve Cahillane has earmarked a $600 million program for marketing, sales and R&D and has segmented brands into 'hold', 'win' and 'win big', lifting the share-gaining or maintaining portfolio proportion to 35% year-to-date and roughly 58% in March alone.
