Kraft Heinz Co. (NASDAQ: KHC) on Tuesday detailed a new strategic transformation plan targeting about $ 2 billion in cost cuts through 2024.
Operating model: The core element of Kraft Heinz’s transformation is a new operating model with five elements, including:
- Confirmation of employees as the most important resource;
- Shrinkage of the portfolio from 55 individual categories to six consumer-driven platforms;
- Creating a new supply chain that is faster, customizable and gives greater visibility
- Development of new strategic partnerships and
- Reinvestment of efficiency gains for better fuel growth.
Long-term financial goals: Kraft set a number of long-term economic goals as part of its transformation. These include organic net sales growth of 1
Changing the ‘Mind-Set’ Previous mistakes resulted in Kraft losing market share in key categories to stores with lower prices. The company registered write-downs of DKK 2.9 billion. $ In July after reducing the value of its assets by more than $ 16 billion. $ Last year.
Kraft’s new goals stem from management’s recognition that previous decisions were “too short-term,” Kraft CEO Miguel Patricio told The Wall Street Journal. The company is now changing this mindset.
Kraft’s stock traded around $ 32.12 per share. Share at the time of publication.
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