Food company Kraft Heinz intends to combine U.S. and Canada businesses to form the North America Zone.
The Kraft Heinz Co. is undergoing a business transformation. The CPG company has released plans for its U.S. and Canada businesses to join forces and create the North America Zone. Kraft Heinz says the move will help increase agility to its innovation agenda, operations and go-to-market approach. The restructuring is expected to be effective in the second fiscal quarter of 2022.
Structural changes to support the strategic plan are aimed at streamlining and synergizing the U.S. and Canada businesses. This evolved model is expected to help the North America Zone pilot high-value products processes, and service innovations, backed by the resources of the two countries, while also increasing speed to market.
These structural changes also includes changes in leadership. Kraft Heinz’s new North America Zone will be led by current U.S. Zone President Carlos Abrams-Rivera. Since joining Kraft Heinz in February 2020, the company credits Abrams-Rivera as being instrumental in reigniting growth in the U.S. business, the company’s largest Zone. Abrams-Rivera will assume the title of North America Zone President.
The North America Zone structure will include three commercial business units that will be organized around the company’s consumer-driven product platforms and geographic needs, including:
- Taste, Meals and Away From Home will be led by current President of Latin America Pedro Navio. It includes the Taste Elevation and Easy Meals Made Better consumer platforms as well as the U.S. foodservice and ingredient businesses.
- Fresh, Beverages and Desserts will be led by current President of Enhancers, Specialty, and Away From Home Steve Cornell. It includes the Fast Fresh Meals, Easy Indulgent Desserts, Real Food Snacking and Flavorful Hydration consumer platforms.
- Canada and North America Coffee will be led by current President of Kids, Snacks, and Beverages Adam Butler.
Navio, Cornell and Butler will report directly to Abrams-Rivera under the new structure.
The North America Zone will begin structural transitions in early 2022 with full organizational and financial reporting changes expected to take effect at the start of its second fiscal quarter next year.
“As consumer, customer and employee needs change, we must be in a position to anticipate, adjust and respond with speed,” said Miguel Patricio, CEO of Chicago-based Kraft Heinz. “Combining our U.S. and Canada businesses — two dynamic Zones — gives us a distinct advantage and will produce faster, more effective results so we can continue investing in our strategic plan and driving sustainable growth. While this is an evolution to our structure, it is part of a broader revolution in how we will work at Kraft Heinz going forward.”
In the last 12 months, Kraft Heinz has taken multiple steps to transform its overall growth profile, strategic focus and financial flexibility. For example, in November, the food company completed the sale of certain assets in its global cheese business and the license of certain trademarks to an affiliate of Groupe Lactalis for approximately $3.3 billion.
Global food and beverage leader Kraft Heinz reported 2020 net sales of approximately $26 billion. Its U.S. and Canada businesses account for about 80% of its 2020 consolidated net sales.