Latest news with #KraftHeinzCo.
Los Angeles Times
11-07-2025
- Business
- Los Angeles Times
Kraft Heinz is said to prepare to break itself up
Kraft Heinz Co. is preparing to break itself up, people familiar with the matter said. Under the plan, the company could spin off a large part of its grocery business into a new entity, according to the people. This would allow it to focus on faster-growing segments such as sauces, they said. Kraft Heinz is still finalizing details of the split, which could be announced in the coming weeks, the people said, asking not to be identified discussing confidential information. Shares of Kraft Heinz were trading 1.3% higher at 2:30 p.m. in New York on Friday, giving the company a market value of about $31.7 billion. The Wall Street Journal reported on the plans earlier on Friday. 'As announced in May, Kraft Heinz has been evaluating potential strategic transactions to unlock shareholder value,' a spokesperson for the company said in response to an inquiry from Bloomberg. Kraft Heinz was formed in a 2015 merger orchestrated by 3G Capital and Warren Buffett's Berkshire Hathaway Inc. The deal created a packaged-food behemoth with a stable of household names, from Heinz ketchup and Classico tomato sauce to Jell-O and Oscar Mayer hot dogs. But the combined company has struggled to expand its sales, with revenue declining for the past two fiscal years as consumer tastes shift and competition intensifies. Profitability, as measured by operating margin, also dipped in the most recent year. In April, Kraft Heinz trimmed its annual sales and profit outlook, citing worsening consumer sentiment. Packaged food companies more broadly are battling shifting sentiment from consumers opting for healthier, less processed options, as well as cheaper store brands. Federal regulators are also pressing for shorter, more natural ingredients lists. A reconfiguring of the packaged food world accelerated this week when Italian candymaker Ferrero International SA agreed to acquire WK Kellogg Co., maker of Froot Loops and other iconic cereals. The value of deals in the consumer staples sector has risen by more than a third this year to $138 billion, data compiled by Bloomberg show, bolstered by food companies. Bloomberg News reported Friday that Performance Food Group Co. has attracted takeover interest from US Foods Holding Corp., a potential deal that would create a food distribution company with combined sales of roughly $100 billion. Tse, Baker and Peterson write for Bloomberg.
Mint
23-06-2025
- Health
- Mint
Texas Law Requiring Warnings on Some Foods Signed by Governor
(Bloomberg) -- Texas legislation that will require warning labels on food and beverages such as M&Ms, Cinnamon Toast Crunch and Fanta will become law after Governor Greg Abbott signed the initiative. Abbott signed Senate Bill 25 on Sunday night — a victory for Health and Human Services Secretary Robert F. Kennedy Jr.'s 'Make America Healthy Again' movement, which is looking to remove ingredients such as synthetic dyes from the nation's food supply. Food companies, which have maintained that all of their ingredients are safe, now have until 2027 to eliminate more than 40 ingredients, including dyes and bleached flour, from their products sold in Texas. If they don't, they'll have to include a label on new packaging warning the product contains ingredients 'not recommended for human consumption' by other countries. Many, but not all, of the additives are banned or require warnings in other countries. The law creates a new requirement for packaged-food companies in a state with more than 31 million residents — the second-most populous in the US. Historically, state regulations have triggered national changes as companies look to streamline production. Companies have already started to mobilize amid pressure from the government and activists to remove ingredients that officials have blamed for health problems including hyperactivity, obesity and diabetes in children. Kraft Heinz Co. and General Mills Inc. recently announced the removal of synthetic dyes from their US products by the end of 2027. Industry groups have said no formal agreement exists with the federal government, however. As currently formulated, products including Coca-Cola Co.'s Fanta, PepsiCo Inc.'s Cheetos Crunchy and Nacho Cheese Doritos and Mars Inc.'s Skittles and M&Ms would be subject to the warning labels. So would Kellanova's Frosted Strawberry Pop-Tarts. Companies can avoid the label requirements for the targeted ingredients if the FDA or USDA declare them safe after Sept. 1. Additionally, if the agencies restrict an ingredient's use, require a warning label, or ban it outright after that same date, then that action would supersede the Texas regulation. If the federal government mandates labeling for 'ultra-processed or processed foods,' that would also supersede Texas' required labels. Barring these conditions or new qualifications for the ingredients' use from the federal government, the warnings will be required on labels beginning in 2027. Questions remain in the industry about how the legislation will be implemented. The law applies for any food labeling copyrighted or developed beginning on Jan. 1, 2027, and under one interpretation, that means it only applies when a company next updates its packaging. Gary Huddleston, a grocery-industry consultant for the Texas Retailers Association, said companies will be able to wait until they reformulate a product or otherwise change their labels. Ingredients listed in the Texas law include BHT, a food additive, titanium dioxide, used for food coloring, and DATEM, an emulsifier. Lawsuits from packaged-food producers are expected. 'I don't expect that to be the end of the debate here,' said Smitha Stansbury, a partner at King & Spalding's FDA and Life Sciences practice, predicting the law will be 'subject to litigation.' 'There's precedent for food companies to challenge this law under First Amendment grounds,' said Seth Mailhot, a partner at Husch Blackwell and the leader of the law firm's FDA group. The food industry has argued that the legislation is too broad. It has also criticized the idea of making policy based on foreign governments' classification of ingredients, as opposed to US or Texas regulators. --With assistance from Deena Shanker. More stories like this are available on
Fashion Network
16-05-2025
- Business
- Fashion Network
Walmart warns it can't hold on price forever with tariff hit coming
'If you've not already seen it, it will happen in May and then it will become more pronounced,' Chief Financial Officer John David Rainey said of price hikes in an interview. Walmart's shares rose 2.2% in premarket trading. The stock had gained 7.2% this year through Wednesday, topping the S&P 500 Index, which had been little changed. While the company plans to hold pat on its full-year sales and profit guidance, it opted not to give guidance on income for the ongoing quarter due to the inability to confidently predict 'trade discussions taking place is changing by the week, and in some cases by the day,' the company said in a statement on Thursday. 'The lack of clarity that exists in today's dynamic operating environment makes the very near-term exceedingly difficult to forecast.' The range of outcomes is 'pretty extreme,' Rainey said, adding that the company is bracing for a bigger hit from the trade war and overall economic malaise in the coming months. Trump's trade war has upended operations for businesses across all industries. While temporary agreements – including the latest 90-day deal with China – are expected to alleviate short-term pressure on the supply chain, the whiplash has made it tough for companies to respond or plan. Most consumer-facing companies have reported soft results in recent weeks, citing volatility in demand and economic disruption. Procter & Gamble Co. and Kraft Heinz Co. slashed their annual outlooks, while Southwest Airlines Co. and other airlines have voiced concerns about a looming recession. Just a handful of names — such as Tapestry Inc. — has posted upbeat reports. Walmart's results now raise the pressure for competitors scheduled to report in the coming weeks, including Home Depot Inc. and Target Corp. The retailer's performance also tends to serve as a barometer of the US economy, so the fact that Walmart performed well but is still warning investors of more tariff pain ahead is an ominous sign. 'It's a challenging environment to operate in retail right now, with prices going up like this. There really hasn't been a historical precedent or prices going up this high, this fast,' Rainey said. 'The magnitude of the tariff increases though are so large that retailers can't absorb these by themselves.' There hasn't been major changes in prices across the industry so far, Rainey said, though tariff-related increases are hitting stores now and Walmart expects them to become more significant as the year progresses. The company said it will monitor such changes and how its competitors respond to them. Walmart is better-positioned than other retailers to weather the range of challenges. The company's global supply chain allows it to source products from a wide range of regions, while its scale means it can negotiate better deals with suppliers. Known for low prices, the company typically performs well during times of economic hardships when people gravitate toward deals. Its digital operations are also giving Walmart a leg-up. The retailer is drawing more shoppers with its pickup and delivery services, and bringing in more higher-income shoppers into to buy groceries and things like cold medicine and baby products. Advertising and newer units are generating higher profit margins than its core store operations, giving it cushion to invest in prices and other parts of the business. Walmart said its online business posted a quarterly profit for the first time during the latest period. Speaking during analyst day in April, Walmart executives had said they viewed the tariff environment as an opportunity to gain market share and signaled their intent to keep prices low. Still, there's been greater week-to-week sales volatility and pointed to factors putting near-term pressure on profits: It wants to be ready to invest in prices as tariffs are enacted, and consumers are buying more groceries that tend to have lower margins. Categories like electronics, home and sporting goods have taken a hit, while rising egg prices were also notable in the quarter.
Bloomberg
12-02-2025
- Business
- Bloomberg
Kraft Heinz Outlook Falls Short, Warns of Worsening Tariff Risk
Kraft Heinz Co. said it will discount key items in the coming year while improving products and boosting marketing in order to compete for inflation-weary customers. The food company forecast full-year adjusted earnings per share and organic sales below analyst estimates. It issued a blanket warning that its outlook does not account for the 'significant worsening' of tariffs, food regulation changes, changes to SNAP benefits, and currency impacts.
