Nice earnings beat of 25.4% above projections for KHC this week. The strengthening of the balance sheet and the increasing free cash flow generation are also a very positive takeaway. Not to mention the hefty dividend which you have emphasized in the past.
A Warren Buffet company where its pays to do crime for a little fine and no jail time to fake the financials because the company can.
The agency alleges that from the last quarter of 2015 to the end of 2018, Kraft "engaged in various types of accounting misconduct" — including faking supplier contracts to get discounts that the company hadn't earned — to ultimately make their financials look better to analysts and investors.
Kraft Heinz (KHC) already had to restate its full-year and quarterly results for 2016 and 2017 after its an internal investigation following the launch of the SEC probe in 2019.
Two individuals, Kraft's former chief operating officer Eduardo Pelleissone and former chief procurement officer Klaus Hofmann, were also personally charged for alleged misconduct in the case after fabricating an estimated 59 supplier and procurement transactions, according to the SEC's complaint. They settled for $300,000 and $100,000, respectively. Hofmann will be barred from serving as an officer or director for five years.
My account is happy...
Went very heavy into KHC in April!
Yield is down to 4.72% with KHC trading at a 52-week high this am after blowout earnings beat on both top and bottom lines. Kraft Heinz has turned the corner. And, now raising a ton of cash to pay down debt in selling off the Planters line to Hormel for $3.35 Billion cash, reducing exposure to private label competition.
NEWS: $KHC 1 Stock to Avoid No Matter What
Kraft Heinz (NASDAQ: KHC) came about in large part at the behest of Warren Buffett's Berkshire Hathaway . With a gain for Berkshire of more than 2,470,000% from 1964-2019, few question Buffett's investment genius. However, neither its status as a recession-proof consumer s...
Got this from KHC - 1 Stock to Avoid No Matter What
$KHC Gilead Sciences and Kraft Heinz: 2 dividend stocks to consider
5 Bargains in Berkshire's Portfolio
We think these holdings look undervalued.
Aug 20, 2020
Kraft Heinz Company: A Large Scale Efficient Food Manufacturer
Aug. 20, 2020 3:18 PM ET|4 comments | About: The Kraft Heinz Company (KHC), Includes: GIS, MDLZ
By: Chetan Woodun
What a disaster?
Too bad for KHC - Unilever trials geolocation tech to tackle deforestation in palm oil supply chains
19 August 2020, source edie newsroom
Unilever is piloting new geolocation technology in a bid to ensure it meets its zero-deforestation targets, which cover supply chains including palm oil, soy and paper and board.
Developed by US-based firm Orbital Insight, the technology leverages GPS data and satellite images to identify patterns of land use and traffic. In regions where there is a consistent flow of traffic between agricultural land and a mill, the technology will predict the likelihood that a farm or plantation is supplying a mill and, in turn, the possibility of deforestation.
Unilever hopes that the technology can help it overcome challenges around securing the visibility of the “first mile” of commodity journeys. Palm oil and soy are particularly challenging to trace, given that crops are often harvested from many different areas and mixed either at the mill or before reaching it.
The consumer goods giant is already using satellite imagery to monitor farms and plantations across its global supply chains but hopes the new technology could make the identification of potential environmental risks more accurate and rapid. Its current approaches largely rely on drawing a radius around land and identifying mills within that area. Unilever also hopes that the technology will help other companies across the value chains of the commodities it sources.
"Better monitoring helps all of us to understand what's happening within our supply chains," Unilever’s chief supply chain officer Marc Engel said.
"By companies coming together and using cutting-edge technology to carefully monitor our forests, we can all get closer to achieving our collective goal of ending deforestation."
Unilever is no stranger to using innovative technologies for supply chain management, having recently implemented blockchain to tea supply chains in a drive to improve social sustainability.
A pivotal moment for palm oil
Palm oil is found in a wide range of foods and some cosmetics and household goods, but its production is often problematic. The race to satisfy growing demand over the past two decades has resulted in vast plantations replacing native forest in countries in south-east Asia, while efforts to prevent forest destruction have often been stymied by corruption or companies flouting the rules.
Unilever has a commitment to reach zero net deforestation in key supply chains, including palm oil, by the end of 2020. As of 2019, the firm was 95% of the way towards this target for palm oil and had met it for paper and soy. Progress was slower, however, for sunflower oil.
While Unilever is the world’s largest single buyer of palm oil, purchasing around 3% of the total amount produced globally each year, it is not the only firm to have made such a commitment. There is, in fact, an industry-wide commitment across the consumer goods sector to tackle deforestation by 2020, binding firms which do not eliminate deforestation from their supply chains to plant trees to ‘offset’ this impact.
CDP warned late last year that just one-third of the 22 firms to have signed this commitment had deployed comprehensive management practices around forestry and land use. Unilever was praised for its efforts, while the likes of Kraft Heinz and Yum! Brands were named as laggards.
Similar research has since been conducted by WWF and Rainforest Action Network. The conclusion was the same; that the FMCG sector is off track to meeting its deforestation commitments.
The Covid-19 pandemic has caused the first global drop in palm oil demand and production since records began. Time will tell if the sector will undergo a truly green recovery.
Way better tha $25 / Price $36.22 / Day's Change 0.6301 (1.77%)
Maxwell House Launches New Zero Waste Single-Serve Coffee Pods
NEWS PROVIDED BY
Good move. - FUNMAN
Kraft Heinz Canada
Aug 17, 2020, 08:00 ET
"Good to the last drop. And long after" reflects a commitment to a more sustainable future and to the next generation of coffee drinkers.
TORONTO, Aug. 17, 2020 /CNW/ - Canadian icon Maxwell House has always been, "Good to the last drop." Now, thanks to a bold new 100% compostable pod innovation launch, it's "Good to the last drop. And long after."
Serving as a stamp of the brand's commitment to sustainability, the launch of Maxwell House 100% compostable coffee pods provides an alternative to the popular single-serve pods. Made entirely from plant-based materials, all pod components and its inner bag are 100% compostable, plus the outer carton is 100% recyclable, leaving zero waste for the consumer. This helps Canadians reduce waste without sacrificing the convenience of single-serve pods or the rich flavour of Maxwell House coffee they know and love.
"We recognize the significant concern packaging waste presents and we are working collectively at all levels of our operations to explore alternative solutions," says Nicole Fischer, Head of Sustainability, Kraft Heinz Canada. "Through ongoing collaboration with packaging experts, organizations and coalitions, Kraft Heinz Canada is working towards a circular economy to ensure real measures are taken to reduce single-use plastics and divert food waste from our landfills, limiting harmful impacts to our environment."
With the launch of Maxwell House 100% compostable coffee pods, waste reduction is at the forefront, with sustainable packaging from beginning to end. It's a simple one-step process: toss the pod into the compost bin and it will decompose into nutrient rich soil. Leaving zero waste for the consumer, the compostable coffee pods are made of 85% coffee grounds (real, actual coffee) with a paper lid, a coffee filter made from cornstarch and a plant-based compostable ring made from over 20% coffee bean husks.
Certified by the Biodegradable Products Institute, this designation verifies that the compostable coffee pod meets global scientific standards for industrial compostability and is formulated to break down in a period of about seven weeks. Gone are the days of tedious separation of recyclable pod elements, including the removal of the lid, ring, mesh filters and coffee grounds. Further, organization into the correct recycling and composting categories is no longer required.
Dr. Calvin Lakhan, industry expert and leading environmental researcher at Toronto's York University says, "Both brands and consumers have a critical role to play in driving sustainability forward through innovative technology and developing solutions that balance the demands of modern society with the needs of the planet. By making the switch from traditional single-use plastic pods to compostable pods, we could help reduce plastics by the height of more than 4,000 CN towers annually."
As a way to showcase the innovation, Maxwell House launched an immersive educational experience to highlight how the pods decompose. Located at stackt market in downtown Toronto, visitors can witness first-hand how the compostable pods break down over the next few weeks in a shipping container filled with 500 lbs. of shredded organic material, such as expired fruits and veggies, and the 100% compostable pods.
By the end of the process, all the pods used to create the experience will break down completely so all that is left is nutrient rich soil. Time lapse assets of the decomposition experience will also be shared with Canadians across social media to demonstrate the reality of the process. To learn more and witness the science behind the pods, visit @MaxwellHouseCA on Instagram, Facebook and Twitter.
The launch will also be supported with a national TV-led campaign spanning digital, social, PR, e-commerce and in-store activations.
Kraft Heinz will be releasing its 2020 Environmental, Social, Governance (ESG) report as part of its corporate citizenship and sustainability efforts in Fall 2020. The report highlights its commitment to sustainability, including the company's aim to make 100% of packaging recyclable, reusable or compostable by 2025.
ABOUT KRAFT HEINZ CANADA
Kraft Heinz Canada is the country's largest food and beverage company and is a subsidiary of Kraft Heinz (NASDAQ: KHC). Kraft Heinz Canada provides high quality, great taste and nutrition for all eating occasions whether at home, in restaurants, or on the go. Kraft Heinz Canada products are found in more than 97 per cent of Canadian households. The company's iconic brands include Kraft Peanut Butter, Heinz Ketchup, KD, Philadelphia Cream Cheese, Renées Dressing, Jell-O, Classico, Kool-Aid and Maxwell House. Kraft Heinz Canada is dedicated to the sustainable health of our people, our planet and our company. For more information, please visit www.kraftheinzcompany.com.
SOURCE Kraft Heinz Canada
For further information: Media inquiries: Stella Karami, firstname.lastname@example.org, 647-884-9651
Kraft Heinz Names New Executives to the Company’s U.S. Leadership Team
August 13, 2020 at 8:00 AM EDT
Leadership Hires in Sales, Marketing, and Communications Will Advance the Company’s Strategic Plans for the U.S. Business
PITTSBURGH & CHICAGO--(BUSINESS WIRE)--Aug. 13, 2020-- Today, the Kraft Heinz Company (Nasdaq: KHC) celebrated another milestone in the company’s turnaround plan with the finalization of its U.S. Leadership Team, naming Cory Onell as President of U.S. Sales; Sanjiv Gajiwala as U.S. Chief Growth Officer; and Stephanie Peterson as Head of U.S. Communications.
The appointment of three new senior executives to key leadership positions underscores the company’s commitment to driving sustained growth through customer-centric innovation, strategic investments, and talent development. Leveraging extensive functional expertise and business acumen, each leader will bring new, complementary capabilities to the company’s U.S. business, the largest of the organization, and help shape the future of Kraft Heinz.
“I am thrilled to welcome Cory, Sanjiv, and Stephanie to the Kraft Heinz family and believe they will add tremendous value to our business by helping accelerate our transformation agenda and drive growth,” said Carlos Abrams-Rivera, U.S. Zone President for Kraft Heinz. “With their inclusion on our U.S. Leadership Team, we’re adding critical, best-in-class Sales, Marketing, and Communications capabilities that will help us build a new Kraft Heinz fueled by innovation, insights and agility.”
Cory Onell joins Kraft Heinz with more than 20 years of experience leading Sales organizations for Consumer Packaged Goods companies. As the head of the U.S. Sales organization, he will drive customer and channel growth by creating dynamic solutions that generate shared value while leveraging the power of the iconic Kraft Heinz portfolio to reclaim category leadership. Most recently, Onell served as Senior Vice President of Sales and the Head of U.S. Retail and Customer and Commercial Teams for the J.M. Smucker Company after successful stints at Campbell Soup Company, Kimberly-Clark Corporation, Mondelez International and Kraft Foods.
As the U.S. Chief Growth Officer, Sanjiv Gajiwala will champion the company’s consumer obsession in this newly created role. Leveraging rich insights and analytics, he will lead the charge in commercializing breakthrough innovations that speak directly to consumer needs and differentiate Kraft Heinz while applying a strategic omnichannel approach to help bring the company’s beloved brands to life in new and exciting ways. Gajiwala joins Kraft Heinz from Mike's Hard Lemonade Co., the leader in the Flavored Malt Beverage category, where most recently he served as Senior Vice President of Marketing.
Having joined Kraft Heinz at the end of May as the first Head of U.S. Communications, Stephanie Peterson will lead all internal and external communications efforts for the Zone business. Before Kraft Heinz, Peterson served in senior-level communications roles at PepsiCo, KIND Snacks, and, most recently, IHOP Restaurants, where she led the communications function, spearheading executive visibility and franchisee communications as well as multi-faceted PR campaigns and experiential marketing initiatives that turned the iconic breakfast chain into one of the most relevant pop-culture brands of the last decade.
Onell, Gajiwala, and Peterson all report to Kraft Heinz U.S. Zone President Abrams-Rivera.
ABOUT THE KRAFT HEINZ COMPANY
For 150 years, we have produced some of the world’s most beloved products at The Kraft Heinz Company (Nasdaq: KHC). We are one of the largest global food and beverage companies, with 2019 net sales of approximately $25 billion. Our portfolio is a diverse mix of iconic and emerging brands. As the guardians of these brands and the creators of innovative new products, we are dedicated to the sustainable health of our people and our planet. To learn more, visit www.kraftheinzcompany.com or follow us on LinkedIn and Twitter.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200813005232/en/
Stephanie Peterson, Head of U.S. Communications
Christopher Jakubik, CFA (Investors)
Source: The Kraft Heinz Company
I hope there isn't a sell off after the news tomorrow morning. A beat would be comforting to longs. It also might bode well for BGS and UN.
Planters Mascot Mr. Peanut Redesigned as Baby Nut
July 2, 2020
Baby Nut, the cute newborn version of Planters’ classic mascot Mr. Peanut who made his debut at the Super Bowl this year, will appear on Planters packaging. On the packaging, a wide-eyed Baby Nut clutches a peanut with an awestruck look on his face. The tagline reads: “That’s one cute nut!”
Baby Nut came to life during Planters’ Super Bowl spot after a pregame ad showed the original Mr. Peanut dying in a nutmobile accident to save pals Wesley Snipes and Matt Walsh. At Mr. Peanut’s funeral, a tear from the Kool-Aid Man landed on the plot, sprouting a peanut plant that brought Mr. Peanut back to life as Baby Nut.
Since his resurrection, Baby Nut has been reading stories to kids in animated videos created for a campaign that ran during the early days of the COVID-19 pandemic after a social media hiatus following the Big Game.
If fans of Baby Nut want to get their hands on Planters packaging featuring his photo, they’ll need to act fast. The packaging is a limited edition run, and as Maya McDonald, head of social and digital across beverages, snacks and desserts at Kraft Heinz, previously told Adweek, he won’t be a baby forever.
“He has the spirit of Mr. Peanut, and he is going to be growing back into his previous form,” she said in April. “So we have a lot of different fun things on the horizon as he goes back to Mr. Peanut, but we’re definitely enjoying doing some fun things with Baby Nut right now, and you’ll see a lot more Baby Nut in the next few months.”
Price $32.11 / Day's Change 0.62 (1.97%) The pandemic has been very, very good to KHC.
Kraft-Heinz 5.25% Yield Is A Buy
Posted on Thursday, April 30th, 2020 by Thomas Hughes
Consumer Staples, It’s What You Want To Own
The consumer staples (XLP) stocks have been on a tear and no wonder. The global coronavirus pandemic is driving people to stay home, stock up, and social-distance, and that means big spending in the staples categories. Companies like Conagra (CAG), General Mills (GIS), the JM Smucker Company (SJM), and Kellogg (K) have all been reporting goods news. news like increased organic sales, improved profits, and positive outlook, and that has been driving their shares back to pre-virus levels and higher.
Today’s spotlight is on Kraft-Heinz (KHC). The global food-staple behemoth reported better than expected top and bottom-line results and a very favorable outlook. Where most S&P 500 companies are going to see their revenue and earnings fall sharply in Q2 Kraft sees a modest increase for both. Don’t forget, Q2 is going to be the worst-hit quarter regarding earnings for the “average company” as most major markets are in lockdown.
What The Consumers Say
When it comes to what the consumers say, following the money is always the best bet. When it comes to Kraft-Heinz, the consumers say they want what the company is selling. Revenue in the 1st quarter not only grew 3.3% from the previous year but came in above the consensus forecast. Earnings, due to a combination of pricing, volume, and mix, also grew from the previous year to beat the consensus expectation.
The average price per case sold increased by 1.6% over the last year showing the company’s ability to pass cost increases on to the consumer. Volume and mix added a total of 4.6% of growth to the results bringing organic growth to nearly 6.2% for the quarter. In the U.S., comps rose 6.4% while Internationally they rose a slightly-more robust at 6.9%.
The only bad news is that Kraft management decided to pull the full-year guidance. The silver lining is that Kraft, like so many others, is positioned to do well during the pandemic. The reason for the guidance-pull more than mitigates its existence; Kraft thinks its current guidance may be too low but is unwilling to say so. Based on the current results and what guidance they were able to provide, the analyst’s consensus is too low and in need of upward revision. As it stands now, the analysts see 2020 revenue growth as flat to slightly negative.
The Dividend, A Healthy 5%
Kraft-Heinz is not well known as a dividend-grower, far from it in fact, but that does not negate its attractiveness today. At today’s prices, Kraft is paying more than 5% with very little expectation the distribution will be cut. Along with today’s release, Kraft issued its next distribution declaration assuring the next payment safe at least.
Beyond that, Kraft is earning plenty to cover its payment despite a slightly-higher than preferred 68% payout ratio. Assuming the company can at least meet consensus over the next two years that should not become a problem. In terms of cash-flow and debt, Kraft is carrying some debt but it’s well-managed long-term debt the company has been working hard to reduce. It was just 1.5 years ago Kraft cut its dividend to $0.40 quarterly in order to accelerate the "deleveraging process to provide greater balance sheet flexibility." That process is ongoing.
The Technical Outlook: A Vee-Shape Recovery Is In Process
A quick look at the chart of KHC prices will show you an asset in the process of recovery. This stock saw a massive correction that shaved 37.5% off its 2020 highs and then a nice rebound. The bottom is more like a quick double-bottom than a true Vee-shaped recovery but that’s not a concern.
What is a concern is that price action appears to be flagging and the indicators are consistent with a top. This may lead the stock to correct again, possibly as low as the $28 level, despite the generally bullish outlook. If KHC falls to the EMA and confirms support I would be a buyer. Likewise, if the stock price stabilizes at today’s levels and moves above $30.25 I would also be a buyer.
Oh Yeah, That’s what I’m doing, Buying more of this ole beat up Gem.
Love how the 5 day chart looks.
The MMs don't care about doing the right thing. They see this as an expense. But for long term this will keep employees which usually means less turnover, less training expenses, less call offs, less workers comp.
Doing the right thing works out in the long run not in the short term. Glad to hear they are doing this!!!!
I didn’t see that news coming. This will spike hard. Consumer company everyone wants in....I see a spike to $36-$39 pps. My conservative opinion
Might be a spike tomorrow with new report of higher revenue Q1
We should see a nice spike here within the next couple weeks.
People will be stocking up on Cans and Products with long shelf life. To the moon
This is going to the moon