stockrowWhat it does
Kraft Heinz manufactures and markets food and beverage products around the world. Founded in 2015 and headquartered in Pittsburgh, it is led by Chief Executive Officer Steve Cahillane. Its brands include Heinz, Kraft, Philadelphia, Lunchables, Oscar Mayer and Velveeta.
The company organizes its products into platforms. Taste Elevation includes condiments, sauces, dressings and spreads; Easy Ready Meals includes Kraft Mac & Cheese, frozen potatoes and other frozen meals. The remaining platforms cover snacks, desserts, drinks, cheese, coffee and meats. Products range from meal kits and powdered beverages to coffee pods, cold cuts and hot dogs.
Kraft Heinz sells to grocery chains and independent stores, mass merchants, convenience and club stores, pharmacies, and other retailers. It also reaches restaurants, hotels, hospitals and other institutions through foodservice distributors and other channels. Consumers can buy its products online through retailers and e-commerce platforms.
The company makes products itself and also contracts with others to manufacture them. Some brands are licensed from third parties: Capri Sun drink pouches, for example, are sold under license in North America. Kraft Heinz also licenses some of its own intellectual property to other companies for use in selected markets.
How it makes money
Kraft Heinz earns revenue primarily by selling food and beverages across its geographic businesses and product platforms. Its customers include retailers that resell products to consumers and distributors that supply foodservice and institutional buyers. It also grants licenses for certain intellectual property in selected jurisdictions.
North America generated $18.6 billion in revenue in FY2025. International Developed Markets generated $3.5 billion, while the combined Emerging Markets businesses generated $2.8 billion. The company manages its emerging-market operating segments separately but presents them together as Emerging Markets.
The product platforms group items by consumer need and help the company decide where to allocate resources. Taste Elevation covers products such as sauces and condiments, while Easy Ready Meals includes packaged and frozen meals. Other platforms span snacks, desserts, drinks, cheese, coffee and meats. The company assigns platforms different investment roles that can vary by market.
Most products are produced throughout the year. Holidays, seasons and other annual events can affect demand for individual products, although seasonality does not typically have a significant effect on consolidated or segment results unless event timing shifts.
Net sales decreased in 2025. Lower volume and changes in the product mix more than offset higher pricing in organic net sales. Adjusted operating income also decreased, as commodity and manufacturing cost inflation, unfavorable volume and mix, and other expenses outweighed higher pricing and lower general corporate expenses.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| North America | $18.6 billion | 74.5% | −4.90% |
| International Developed Markets | $3.5 billion | 14.2% | 0.11% |
| Emerging Markets Segment | $2.8 billion | 11.3% | 1.77% |
Customers and how it sells
Kraft Heinz sells through its own sales organizations and through independent brokers, agents and distributors. Its retail customers range from grocery chains and wholesalers to independent grocers, convenience stores, club stores and mass merchants. Foodservice distributors and institutions, including restaurants, hotels, hospitals and government agencies, also buy its products. Online sales run through e-commerce platforms and retailers.
Walmart Inc. is Kraft Heinz’s largest customer. The company also has key customers in different regions around the world.
North America accounted for 74.5% of company revenue in FY2025. International Developed Markets accounted for 14.2%, and Emerging Markets for 11.3%. The company sells some brands across several regions, while others are associated with particular markets. Its significant 2025 trademarks included Heinz across its geographic groupings, Kraft and Philadelphia in North America, and ABC and Quero in Emerging Markets.
Kraft Heinz divested its Italian infant and specialty food business, including rights to the Plasmon brand, on December 31, 2025, in the first quarter of its fiscal 2026.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| U.S. Plans | $16.8 billion | 67.3% | −5.54% |
| Other | $5.1 billion | 20.4% | 1.25% |
| Canada | $1.8 billion | 7.22% | 1.52% |
| United Kingdom | $1.3 billion | 5.09% | −0.78% |
Suppliers and costs
Kraft Heinz manufactures products and contracts with other manufacturers. Its ingredients include dairy and meat products, sugar, coffee, tomatoes, vegetable oils, eggs, fruits, vegetables and grains. Packaging purchases include plastics, resin, cardboard, glass, paper and metal; manufacturing and distribution also use electricity, diesel fuel and natural gas.
The company sources commodities from providers ranging from international producers to local independent sellers. It centralizes procurement for commodities used across many product categories, while some product lines and brands source their own specialized materials. Kraft Heinz seeks preferred-purchaser arrangements and supplier partnerships for pricing and dependable supply.
Commodity prices fluctuate with factors including weather, currency movements, demand, geopolitical conflicts and trade policy. Kraft Heinz uses hedging, pricing and operational measures to manage costs, but it does not fully hedge commodity price changes. In 2025, coffee, meat and egg costs increased, while cheese, dairy and tomato costs decreased.
Kraft Heinz expects supply-chain inflation to moderate through 2026, although it says uncertainty remains. It also expects inflation in 2027, citing packaging and commodity pressure and an expected reversal of some dairy cost benefits.
- Revenue$24.9B
- Cost of revenue−$16.6B
- Selling, general and administrative−$3.7B
- Other operating costs−$9.3B
- Operating income−$4.7B
Competitive position
Kraft Heinz competes with large national and international food and beverage companies and with local and regional producers. Its branded products also compete against private-label goods sold by retailers, wholesalers and cooperatives. Competition takes place in stores and online, including at large-format retailers and discounters. No competing company is identified by name in the available descriptions of Kraft Heinz’s competitive markets.
The company competes on price, taste, quality, convenience, nutrition, innovation, service, brand recognition and loyalty. Marketing, distribution and the ability to respond to changing preferences also matter. Kraft Heinz says improving its position or introducing products requires substantial advertising, promotional and research spending.
Our reading: The brand portfolio is a meaningful source of competitive strength because it includes recognized names across several categories and regions, although branded and private-label alternatives compete for the same customers. Our reading: Distribution is another source of strength because the company reaches retailers, foodservice buyers and online shoppers through multiple channels, but its reported distribution losses show that access can weaken. Our reading: Centralized purchasing offers a scale advantage in sourcing, although commodity inflation and incomplete hedging limit its protection against higher costs.
Kraft Heinz says it has gained share in Philadelphia cream cheese while consumption has fallen as the category came under pressure. It has launched a lactose-free cream cheese product and is building distribution for it.
Growth opportunities
Kraft Heinz uses product innovation, brand investment and distribution to pursue growth. Its research and development work includes new and renovated products, packaging and production processes. The company also organizes its portfolio into platforms with different investment roles, which can vary by market.
Recent products include lactose-free Philadelphia cream cheese and KD Ramen in Canada. Kraft Heinz says it sold its initial KD Ramen inventory quickly and plans to bring it to North America. It is also investing behind products including Power Mac and Capri Sun Hydrate. The company expects the innovation pipeline and investments it has built to support its performance as retailers reset shelves.
Away-from-home sales provide another distribution channel. Kraft Heinz says it has gained distribution in ketchup and other condiments and attributes much of its recent away-from-home success to share gains. Its products reach restaurants and other institutions through distributors and other sales channels.
Kraft Heinz says it has agreed to divest its North American coffee business to One Rock and will retain a non-controlling equity stake. The company says the transaction will let it concentrate capital and management attention on other parts of the portfolio. Separately, the board paused work on a planned separation into independent public companies in February 2026; resuming it would remain subject to conditions including final board approval.
- $26.0BFY2021
- $26.5BFY2022
- $26.6BFY2023
- $25.8BFY2024
- $24.9BFY2025
Structural risks
- Competition and consumer preferences: Kraft Heinz competes with branded and private-label products and depends on maintaining its brand image and meeting changing tastes. Its pricing actions have in some instances reduced market share, and it says unsuccessful efforts to satisfy consumer preferences could affect sales and results.
- Costs and supply: Commodity and packaging prices are exposed to weather, trade policy, currency movements and other external factors. Hedging does not cover every price change, while disruptions at company, supplier or distributor facilities may delay products.
- Debt: Kraft Heinz has substantial indebtedness. Principal and interest payments can reduce cash available for operations, dividends, capital spending and other opportunities, while debt can limit financing flexibility.
- Food safety and regulation: Product injuries or illnesses, recalls, legal judgments and regulatory enforcement could damage reputation and profitability. Food production, marketing, labeling and distribution are subject to extensive regulation.
- Portfolio changes: The planned company separation is paused. If pursued, it could require significant time and expense, and the pause could increase execution costs if work resumes.
- Consumer assistance: Changes to the Supplemental Nutrition Assistance Program are expected to reduce participation and average benefits. Kraft Heinz says this could affect demand, market share, results and cash flows.
Bottom line
Our reading
Kraft Heinz is a global packaged-food business whose sales depend heavily on North America, established brands and retail distribution (item1; item7). Its brands and sourcing scale support its competitive position, but lower volumes, customer concentration and commodity inflation remain material pressures (item1; item7). Investment in products and distribution, alongside the proposed coffee divestiture, is reshaping the portfolio while debt constrains how cash can be used (call_prepared; call_qa; item1a).