The Kraft Heinz Company (Nasdaq: KHC) is a global food and beverage company committed to growing its iconic and emerging brands. The company leverages its scale and agility across six consumer-driven product platforms. Kraft Heinz operates through two reportable segments: North America and International. The company is dedicated to making a sustainable and ethical impact while helping to feed the world in healthy, responsible ways.

During the fourth quarter of 2023, certain organizational changes were announced that are expected to impact the company's future internal reporting and reportable segments. The company expects to divide its International segment into three operating segments: Europe and Pacific Developed Markets, West and East Emerging Markets, and Asia Emerging Markets. As a result of these changes, the company expects to have two reportable segments: North America and International Developed Markets. The company anticipates that its remaining operating segments, consisting of WEEM and AEM, will be combined and disclosed as Emerging Markets. The company expects that the change to its reportable segments will be effective in the first quarter of 2024.

• Employees: Approximately 36,000 (as of December 30, 2023)
• Geographic Footprint: Operates in numerous countries within developed and emerging markets
• Headquarters: One PPG Place, Pittsburgh, Pennsylvania
• Founded: July 2, 2015 (through the merger of Kraft Foods Group, Inc. and H.J. Heinz Holding Corporation)
• Number of locations/facilities: 75 manufacturing and processing facilities
• Revenue: $26.64 billion (FY2023)
• Market Capitalization: Approximately $32.1 billion (as of the last business day of the second quarter)
• Key Subsidiaries/Brands: Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Capri Sun, Maxwell House, Kool-Aid, Jell-O, ABC, Master, Quero, Golden Circle, Wattie's, Pudliszki, Plasmon

• CEO: Carlos Abrams-Rivera (since December 2023)
• CFO: Andre Maciel (since March 2022)
• Global Chief Growth Officer: Diana Frost (since December 2023)
• Executive Vice President and Chief Legal and Corporate Affairs Officer: Rashida La Lande (since December 2023)
• Executive Vice President and Global Chief Procurement and Sustainability Officer: Marcos Eloi Lima (since December 2023)
• Executive Vice President and President, North America: Pedro Navio (since December 2023)
• Executive Vice President and Chief Omnichannel Sales and Asian Emerging Markets Officer: Cory Onell (since December 2023)
• Executive Vice President and Global Chief Supply Chain Officer: Flávio Barros Torres (since December 2021)
• Executive Vice President and Global Chief People Officer: Melissa Werneck (since December 2021)

Key leaders have extensive experience in the food and beverage industry.

• Annual Revenue: $26.64 billion (FY2023)
• Net Income: $2.85 billion (FY2023)
• Market Cap: Approximately $32.1 billion (as of the last business day of the second quarter)
• Total Assets: $90.34 billion (as of December 30, 2023)
• Employees: Approximately 36,000 (as of December 30, 2023)
• Key Financial Highlights: Net sales increased 0.6% in 2023 compared to 2022, driven by higher pricing which more than offset unfavorable volume/mix. Operating income increased 25.8% to $4.6 billion in 2023 compared to 2022, primarily driven by higher pricing, efficiency gains, lower non-cash impairment losses, and the impact of the securities class action lawsuit in the prior year period.

Kraft Heinz manages its sales portfolio through six consumer-driven product platforms:

• Taste Elevation: Includes condiments and sauces.
• Fast Fresh Meals: Includes ready-to-eat meals and meal kits.
• Easy Meals Made Better: Includes meal solutions and components.
• Real Food Snacking: Includes snacks made with real ingredients.
• Flavorful Hydration: Includes beverage concentrates and ready-to-drink beverages.
• Easy Indulgent Desserts: Includes desserts and baking components.

Kraft Heinz operates through two reportable segments defined by geographic region:

• North America: Includes the United States and Canada. In 2023, the five largest customers in this segment accounted for approximately 46% of net sales.
• International: Includes all other regions. In 2023, the five largest customers in this segment accounted for approximately 14% of net sales.

Kraft Heinz is focused on driving transformation, with consumers at the center of its operations. The company leverages its scale and agility to grow its iconic and emerging brands. Key strategic initiatives include:

• Product innovation and renovation to meet changing consumer needs.
• Focus on food safety, quality, and consistency.
• Superior product and package performance.
• Continuous process, product, and supply chain optimization.
• Improving market position through advertising and promotional activities.

The company is also committed to making a sustainable and ethical impact while helping to feed the world in healthy, responsible ways.

Kraft Heinz operates in the highly competitive food and beverage industry, facing competition from large national and international companies as well as numerous local and regional players. The company competes on the basis of product innovation, price, product quality, nutritional value, service, taste, convenience, brand recognition and loyalty, effectiveness of marketing and distribution, promotional activity, and the ability to identify and satisfy changing consumer preferences. Key competitors include both branded and private label products sold by retailers and wholesalers. The company's market position is influenced by its ability to secure shelf space, maintain competitive pricing, and adapt to changes in consumer preferences.

• Industry Risks: The company operates in a highly competitive industry and may need to reduce prices or be restricted in its ability to increase prices. Failure to effectively assess, timely change, and properly set pricing, promotions, or trade incentives may negatively impact the company's market share.
• Consumer Preferences: The company's success depends on its ability to correctly predict, identify, and interpret changes in consumer preferences and demand, and to offer new products to meet those changes. Failure to offer products that appeal to consumers could materially and adversely affect product sales.
• Retail Landscape: Changes in the retail landscape or the loss of key retail customers could adversely affect the company's financial performance. Retail consolidation and increasing retailer power could materially and adversely affect product sales.
• Supply Chain: Disruptions in the global economy caused by geopolitical conflicts, unanticipated business disruptions, and natural events could adversely affect the company's ability to provide products to its customers or its results of operations.
• Financial Risks: The company has a substantial amount of indebtedness and may be unable to generate sufficient cash flow to pay its indebtedness. Additional impairments of the carrying amounts of goodwill or other indefinite-lived intangible assets could negatively affect the company's financial condition and results of operations.