General presentation of the Kraft Heinz Company:
In this section we offer you the opportunity to learn more about the Kraft Heinz Group and its activities with explanations on its major products and the profits generated by each part.
The Kraft Heinz Company is an American company in the food sector that specialises in the manufacture and sales of food products. To this end Kraft Heinz owns many brands including Kraft, Heinz, ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Maxwell House, Oscar Mayer, Ore-Ida, Philadelphia, Planters, Plasmon, Quero, Weight Watchers, Smart Ones, and Velveeta.
It is possible to categorise this group’s products according to the turnover generated in the following manner:
- Ketchups, sauces and other condiments represent 25.7% of this company’s turnover.
- The dairy products generate 20.1% of the turnover.
- The snacks and fast and frozen foods represent 19.5% of the group’s turnover.
- The drinks sector including cold, energy, juice and coffee drinks represent 11.2% of its turnover.
- Meat and seafood products represent 9.5% of the turnover.
- The sweets, desserts and snacks products represent 7.7% of the turnover.
- The dietary foods and infant food sectors generate 2.9% of the company’s turnover with cereals, milk, biscuits and other products.
- Finally, 3.4% of the group’s turnover is from other types of products.
Concerning the geographical distribution of the Kraft Heinz activities we note that this group achieves 69% of its turnover in the United States, 10.3% in Europe, the Middle East and Africa, 8.3% in Canada and the remaining 12.4% in other areas worldwide.
Know the competition to the Kraft Heinz Group:
Let us now pass on to a global presentation of the major competitors of the Kraft Heinz Group on the market with companies that exercise activities in the same sector and the same categories.
- General Mills: This American company is specialised in the food sector and is currently in sixth position worldwide. It holds around 100 brands in its portfolio which includes certain leading household brands including Green Giant, Häagen Daz, Yoplait, Parampara, Nature Valley and Old El Paso.
- Campbell Soup Company: This is another multinational American food company that produces and sells food products including soups, biscuits and drinks. This company’s products are exported to no less than 120 different countries worldwide.
- Danone: The French group Danone is also a competitor of Kraft Heinz. This is a multinational company which is quoted on the stock markets and in particular is included on the CAC 40 French national stock market index.
- Nestle: Finally, the Swiss group Nestle is also a major player in this activity sector on a global level. In fact this is the largest food company worldwide as well as the largest dairy company in the world. Nestle produces a large range of food and drinks products for human consumption as well as animal foods and is one of the leading innovating companies in this sector in Europe through the Nescafe and Bolino brands as well as many other household names.
The strategic alliances implemented by the Kraft Heinz Group:
In the past, the Kraft Heinz Group regularly implemented strategic partnerships with other companies with the aim of accelerating its growth or increasing its profitability. Here are two concrete examples of this type of strategic alliances to assist you in better understanding their strategy.
- Nissin Food: Firstly in 2019 it was with the Indian subsidiary of the Japanese company Nissin Foods that Kraft Heinz signed a distribution partnership concerning its ketchup and new product launches. It should be remembered that Nissin Food possesses a network of over 250,000 shops in India.
- Land’Or: In 2016 the Kraft Heinz Group signed a production partnership with the Land’Or Company with the aim of producing cheeses from this group with several varieties under the Kraft Heinz brand.
Of course, these two examples of partnerships are from the past and you should above all concentrate on the future partnership announcements. These announcements are in fact often followed by volatile rising trends in this share price and can therefore serve as a departure point for you to take position on.