What changed in this filing

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Item 1. Business

2024-02-15 compared with 2023-02-16 · 89 added, 86 removed, 174 unchanged (50% of the section changed)

9 unchanged sentences

At the closing of the 2015 Merger, Heinz was renamed The Kraft Heinz Company, and H.

Heinz Company changed its name to Kraft Heinz Foods Company.

Before the consummation of the 2015 Merger, Heinz was controlled by Berkshire Hathaway Inc.

(“Berkshire Hathaway”) and 3G Global Food Holdings, LP (“3G Global Food Holdings” and, together with its affiliates, “3G Capital”), following their acquisition of H.

Heinz Company on June 7, 2013 (the “2013 Heinz Acquisition”).

Heinz Company changed its name to Kraft Heinz Foods Company (“KHFC”).

We operate on a 52- or 53-week fiscal year ending on the last Saturday in December in each calendar year.

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Reportable Segments:

In the second quarter of 2022, our internal reporting and reportable segments changed.

We combined our United States and Canada zones to form the North America zone as a result of previously announced organizational changes, which are intended to advance and support our long-term growth plans by streamlining and synergizing our United States and Canada businesses.

Subsequently, we manage and report our operating results through two reportable segments defined by geographic region:

We manage and report our operating results through two reportable segments defined by geographic region:

North America and International.

We have reflected this change in all historical periods presented.

During the fourth quarter of 2023, certain organizational changes were announced that are expected to impact our future internal reporting and reportable segments.

We expect to divide our International segment into three operating segments — Europe and Pacific Developed Markets (“EPDM” or “International Developed Markets”), West and East Emerging Markets (“WEEM”), and Asia Emerging Markets (“AEM”) — in order to enable enhanced focus on the different strategies required for each of these regions as part of our long-term strategic plan.

As a result of these changes, we expect to have two reportable segments:

North America and International Developed Markets.

We anticipate that our remaining operating segments, consisting of WEEM and AEM, will be combined and disclosed as Emerging Markets.

We expect that the change to our reportable segments will be effective in the first quarter of 2024.

See Note 20, Segment Reporting , in Item 8, Financial Statements and Supplementary Data , for our geographic financial information by segment.

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Depending on the country, trademarks generally remain valid for as long as they are in use or their registration status is maintained.

Trademark registrations generally are for renewable, fixed terms.

Significant trademarks by segment based on net sales in 2023 were:

Majority Owned and Licensed Trademarks

North America Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Capri Sun*, Maxwell House, Ore-Ida, Kool-Aid, Jell-O

International Heinz, ABC, Master, Kraft, Quero, Golden Circle, Wattie’s, Plasmon, Pudliszki

North America Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Capri Sun*, Maxwell House, Kool-Aid, Jell-O

International Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie’s, Pudliszki, Plasmon

*Used under license.

We sell certain products under brands we license from third parties.

In 2022, brands used under licenses from third parties included Capri Sun packaged drink pouches for sale in the United States.

In 2023, brands used under licenses from third parties included Capri Sun packaged drink pouches for sale in our North America segment.

We also grant certain licenses to third parties to use our intellectual property rights in select jurisdictions.

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We manufacture (and contract for the manufacture of) our products from a wide variety of raw materials.

We purchase and use large quantities of commodities, including dairy products, meat products, soybean and vegetable oils, tomatoes, coffee beans, sugar and other sweeteners, other fruits and vegetables, corn products, wheat products, and potatoes, to manufacture our products.

We purchase and use large quantities of commodities, including dairy products, meat products, tomato products, soybean and vegetable oils, sugar and other sweeteners, coffee beans, wheat and processed grains, eggs, and other fruits and vegetables to manufacture our products.

In addition, we purchase and use significant quantities of resins, fiberboard, metals, and cardboard to package our products, and we use electricity, diesel fuel, and natural gas in the manufacturing and distribution of our products.

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The prices of raw materials that we use in our products are affected by external factors, such as global competition for resources, currency fluctuations, severe weather or global climate change, pandemics, geopolitical conflicts, consumer, industrial, or investment demand, and changes in governmental regulation and trade, tariffs, alternative energy, and agricultural programs.

In 2022, we continued to experience higher commodity costs and supply chain costs, including procurement, logistics, and manufacturing costs, largely due to inflationary pressures.

We expect these costs to continue to increase and inflation to remain elevated through 2023.

In 2023, we continued to experience higher commodity costs and supply chain costs, including manufacturing, procurement, and logistics costs largely due to inflationary pressures concentrated in the first half of the year.

Our procurement teams monitor worldwide supply and cost trends so we can obtain ingredients and packaging needed for production at competitive prices.

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• world-class and uncompromising food safety, quality, and consistency;

• superior, customer-preferred product and package performance;

• superior, consumer-preferred product and package performance;

• continuous process, product, and supply chain optimization.

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In 2023, the five largest customers in our North America segment accounted for approximately 46% of North America segment net sales and the five largest customers in our International segment accounted for approximately 14% of International segment net sales.

Our largest customer, Walmart Inc., represented approximately 21% of our net sales in 2022 and approximately 22% of our net sales in each of 2021 and 2020.

Our largest customer, Walmart Inc., represented approximately 21% of our net sales in 2023 and 2022, and approximately 22% of our net sales in 2021.

Both of our segments have sales to Walmart Inc.

We manage our sales portfolio through six consumer-driven product platforms.

As of December 30, 2023, we manage our sales portfolio through six consumer-driven product platforms.

A platform is a lens created for the portfolio based on a grouping of real consumer needs and includes the following for Kraft Heinz:

Taste Elevation, Fast Fresh Meals, Easy Meals Made Better, Real Food Snacking, Flavorful Hydration, and Easy Indulgent Desserts.

The platforms are modular and configurable by reportable segment and market.

The platforms are modular and configurable by reportable segment and market and help us to manage and organize our business effectively by providing insight into our various product categories and brands.

Further, each platform is assigned a role within our business to help inform our resource allocation and investment decisions, which are made at the reportable segment level.

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The role of a platform may also vary by reportable segment and market.

The platform approach helps us to manage our business efficiently, including the oversight of our various product categories and brands, and transforms the way we plan for our growth.

We are currently evaluating our existing platforms and roles and anticipate changes to align with our future growth strategy.

Net Sales by Platform:

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Our people are at the heart of who we are at Kraft Heinz.

We drive growth through development opportunities, career ownership, and autonomy and recognize and reward outstanding performance at every level, creating a true spirit of meritocracy.

We drive growth through accountability, development opportunities, career ownership, and autonomy and recognize and reward outstanding performance at every level, creating a true spirit of meritocracy.

We strive to channel our employees’ passion, curiosity, and attitude to make an impact on our future and our legacy by leading as learners, acting as owners, and being change agents.

Our Board of Directors (“Board”), through the Human Capital and Compensation Committee, oversees our human resources strategy, key policies, and our 2025 diversity, inclusion, and belonging aspirations.

Engagement and Retention:

Engagement and Inclusion:

We are committed to attracting, developing, and retaining diverse, world-class talent and creating an engaging and inclusive culture that embodies our Purpose, Vision, and Values.

1 unchanged sentence

Driven by our Value We champion great people , we support our employees’ health, safety, and professional development and reward outstanding performance at every level.

Our compensation, benefits, recognition, and LiveWell programs are designed to attract and engage highly skilled talent, meet individual and family needs, and inspire, celebrate, and engage our people and teams through active listening channels.

Our rewards strategies (compensation, benefits, recognition, and wellbeing) aim to help our employees help themselves to LiveWell.

LiveWell represents our total rewards offerings that are designed to attract and engage highly skilled talent, meet individual and family needs, and inspire, celebrate, and engage our people and teams through enhanced interactions in moments that matter in an environment where employees feel productive, trusted, and empowered.

Guided by our Values, we conduct a global engagement survey annually to provide employees with an opportunity to share anonymous feedback with management across a variety of topic areas.

The results and comments are reviewed by the Board, senior leadership, managers, and human resources to help determine where changes are needed to support our people and teams.

Wellbeing and Safety:

Our employees’ health, safety, and wellbeing are a top priority.

We establish and administer company-wide policies and processes to protect the health, safety, and security of our employees, subcontractors, and all those who visit our facilities, and to comply with applicable regulations.

We review and monitor our performance closely to drive continuous improvement.

To help us evaluate how effective our safety efforts are in lowering incidents rates, we use a Total Recordable Incident Rate (“TRIR”).

TRIR is a medical incident rate based on the U.S.

Occupational Safety and Health Administration (OSHA) record-keeping criteria (injuries per 200,000 hours).

Our TRIR globally was 0.53 in 2022 and 0.62 in 2021.

Our global LiveWell program addresses physical, emotional, financial, and social health and wellbeing.

We champion the LiveWell program’s holistic approach to wellbeing with enhanced programs, including healthcare benefits, disability, and employee assistance initiatives.

Diversity, Equity, Inclusion, and Belonging:

Diversity, inclusion, and belonging are key drivers for engagement.

For us, it also means having our diverse consumer base represented in our workforce and included in relevant business decisions.

We live our Value of We demand diversity by focusing on three strategic areas:

hiring and growing talent from diverse backgrounds and perspectives, developing inclusive leaders, and tracking and reporting our progress.

Our Business Resource Groups (BRGs) are employee-led, multi-functional groups based upon shared common interests.

They help foster an engaged and inclusive environment where all talent grows and thrives, create a network of support for employees, and serve as a resource for the organization on topics related to their focus area.

Our Global Inclusion Council has been established to create strategic accountability for results.

1 unchanged sentence

The Council is comprised of executive leaders and members of the Board.

In 2021, we shared our 2025 diversity, inclusion, and belonging aspirations, which include that 50% of our global management positions be filled by women and 30% of our salaried U.S.

We have 2025 diversity, equity, inclusion, and belonging (“DEI&B”) aspirations that have shaped some of our guiding principles.

Our long-term ambition is to have demographic parity in the countries in which we operate and to be recognized as a top quartile company in inclusion.

Our aspirations include that 50% of our global management positions be filled by women and 30% of our salaried U.S.

employee population identify as people of color.

Our DEI&B efforts have continued to be expanded as part of our multi-year strategy.

Each day, we are working to create a healthier, more equitable global workplace and world.

As of December 30, 2023:

• 41% of employees in management positions globally identified as women;

• 43% of employees in global management positions identified as women;

• 29% of salaried employees in the U.S.

2 unchanged sentences

• 78% of our Executive Leadership Team identified as people of color.

As we work to meet our 2025 aspirations, we are focused on:

• Hiring and Growing Talent from Diverse Backgrounds and Perspectives through expanded recruiting partnerships with Historically Black Colleges and Universities and training and leveraging artificial intelligence in our hiring process to reduce bias.

In addition, our Business Resource Groups (BRGs) offer learning and development opportunities and create a network of support for employees.

As we progress on our 2025 aspirations, we are focused on:

• Hiring, Investing in, and Growing Talent from Diverse Backgrounds and Perspectives through expanded recruiting partnerships with Historically Black Colleges and Universities, diverse professional organizations, and training in our hiring process to reduce bias and promote equal employment opportunities.

• Developing Inclusive Leaders through an interactive learning experience for managers on interrupting bias in our Organizational People Review process and their role in creating an inclusive environment.

• Tracking and Reporting Our Progress year over year through oversight by the Kraft Heinz Global Inclusion Council.

Wellbeing and Safety:

Our employees’ health, safety, and wellbeing are a top priority.

We review and monitor our performance closely to drive improvement.

To help us evaluate how effective our safety efforts are in lowering incidents rates, we use a Total Recordable Incident Rate (“TRIR”).

TRIR is a medical incident rate based on the U.S.

Occupational Safety and Health Administration (OSHA) record-keeping criteria (injuries per 200,000 hours).

Our TRIR globally was 0.53 in 2023 and 2022.

Our global LiveWell program focuses on four wellbeing elements — physical, emotional, financial, and social health — and provides specific programs and resources to support our employees and their families within each of these areas.

Learning and Development:

Through Kraft Heinz Ownerversity, we provide learning and development offerings to employees via live and virtual learning experiences.

These offerings enable employees to execute with excellence in their roles, accelerate their learning curves, and grow great careers through continuous learning.

With Ownerversity’s targeted platforms, employees can focus on timely and topical development areas including leadership, management excellence, functional capabilities, and diversity, equity, inclusion, and belonging.

In 2022, our global women’s accelerator program, The WE Network, won a Brandon Hall Gold Award for Best Advance in Leadership Development for Women.

Through Kraft Heinz Ownerversity, we provide learning opportunities for each of our employees, designed to inspire and grow talent within Kraft Heinz while developing employees’ capabilities to help them navigate their career journey.

Our learning and development offerings are created to enable employees to live our Value We dare to do better every day and own their personal learning and development.

We believe this empowers employees to execute with excellence in their current role, accelerate their learning curve, and grow a great career.

Through Ownerversity, employees have access to custom Kraft Heinz training, learning and development materials, and external content libraries and articles.

Rewards and Compensation:

Our Total Rewards strategy is designed to provide an array of meaningful and flexible programs for our diverse workforce.

Our Total Rewards philosophy is to provide a meaningful and flexible spectrum of programs that equitably support our diverse workforce and their families.

Total Rewards includes compensation elements of salary and wages and incentives, healthcare, savings and insurance plans, wellbeing plans, employee recognition programs, and other voluntary elected benefits.

We aim for global consistency while respecting local market practices.

The plans are designed to be market competitive and data-driven to promote our high-performance and results-oriented culture and realize our Purpose to Make Life Delicious for employees and their families.

We aim for global consistency while respecting local market practices and employee preferences.

The plans are designed to be market competitive and data-driven to promote our high-performance and results-oriented growth culture and realize our Purpose to Make Life Delicious for employees and their families.

Ethics and Transparency:

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Name and Title Age Business Experience in the Past Five Years

Miguel Patricio,

Chief Executive Officer and Chair of the Board

56 Chief Executive Officer (since June 2019);

Chair of the Board (since May 2022);

Director (May 2021 to May 2022);

Zone President (July 2019 to February 2020).

Chief of Special Global Projects–Marketing (January 2019 to June 2019) and Chief Marketing Officer (2012 to December 2018) at Anheuser-Busch InBev SA/NV (“AB InBev”), a multinational drink and brewing holdings company.

Carlos Abrams-Rivera,

Chief Executive Officer and Director

56 Chief Executive Officer (since December 2023);

President Kraft Heinz (August to December 2023);

Executive Vice President and President, North America (December 2021 to August 2023);

Zone President (February 2020 to December 2021).

Executive Vice President and President, Campbell Snacks (May 2019 to February 2020), and President, Campbell Snacks (March 2018 to May 2019) at Campbell Soup Company (“Campbell”), a food and beverage company.

Andre Maciel,

8 unchanged sentences

Commercial Finance (2015 to 2017).

Carlos Abrams-Rivera,

Executive Vice President and President, North America

55 Executive Vice President and President, North America (since December 2021);

Zone President (February 2020 to December 2021).

Executive Vice President and President, Campbell Snacks (May 2019 to February 2020), President, Campbell Snacks (March 2018 to May 2019), and President, Pepperidge Farm (2015 to March 2018) at Campbell Soup Company, a food and beverage company.

Kathy Krenger,

Senior Vice President and Global Chief Communications Officer

55 Senior Vice President (since December 2021) and Global Chief Communications Officer (since July 2021).

Senior Vice President, Global Communications (2017 to July 2021) at Hyatt Hotels Corporation, a global hospitality company.

Global Chief Growth Officer

41 Global Chief Growth Officer (since December 2023);

Chief Growth Officer, North America (August to December 2023);

Head of North America Disruption and Canada Chief Marketing Officer (January to August 2022);

and Chief Growth Officer, Canada (September 2020 to December 2021).

Head of Portfolio Transformation, Mars Wrigley (January 2019 to September 2020) at Mars, Incorporated, a multinational confections company.

Rashida La Lande,

Executive Vice President, Global General Counsel, and Chief Sustainability and Corporate Affairs Officer

49 Executive Vice President, Global General Counsel, and Chief Sustainability and Corporate Affairs Officer (since December 2021);

Corporate Secretary (since January 2018 to May 2022);

Head of ESG (formerly CSR) and Government Affairs (October 2018 to December 2021);

and Senior Vice President and Global General Counsel (January 2018 to December 2021).

Partner (2007 to January 2018) at Gibson, Dunn & Crutcher LLP, a global law firm.

Executive Vice President and Chief Legal and Corporate Affairs Officer

50 Executive Vice President and Chief Legal and Corporate Affairs Officer (since December 2023);

Executive Vice President, Global General Counsel, and Chief Sustainability and Corporate Affairs Officer (December 2021 to December 2023);

Corporate Secretary (2018 to May 2022);

Senior Vice President, Global General Counsel and Head of ESG (formerly CSR) and Government Affairs (2018 to December 2021);

and Senior Vice President and Global General Counsel (2018).

Marcos Eloi Lima,

Executive Vice President and Global Chief Procurement Officer

45 Executive Vice President (since December 2021) and Chief Procurement Officer (since October 2019);

Executive Vice President and Global Chief Procurement and Sustainability Officer

46 Executive Vice President and Global Chief Procurement and Sustainability Officer (since December 2023);

Executive Vice President and Global Chief Procurement Officer (December 2021 to December 2023);

Chief Procurement Officer (October 2019 to December 2023);

and Advisor in the area of procurement (July to October 2019).

Vice President Procurement & Sustainability Middle Americas Zone (2016 to July 2019) at AB InBev.

Rafael Oliveira,

Executive Vice President and President, International Markets

48 Executive Vice President and President, International Markets (since December 2021);

International Zone President (July 2019 to December 2021);

Zone President of EMEA (2016 to June 2019);

Managing Director of Kraft Heinz UK & Ireland (2016 to 2016);

and President of Kraft Heinz Australia, New Zealand, and Papua New Guinea (2014 to 2016).

Vice President Procurement & Sustainability Middle Americas Zone (2016 to July 2019) at Anheuser-Busch InBev SA/NV (“AB InBev”), a multinational drink and brewing holdings company.

Executive Vice President and President, North America

43 Executive Vice President and President, North America (since December 2023);

President – Taste, Meals, and Away From Home (March 2022 to December 2023);

President, Latin America (November 2019 to February 2022);

and President, Brazil (2017 to November 2019).

Executive Vice President and Chief Omnichannel Sales and Asian Emerging Markets Officer

50 Executive Vice President and Chief Omnichannel Sales and Asian Emerging Markets Officer (since December 2023) and Chief Sales Officer, U.S.

(August 2020 to December 2023).

Senior Vice President and Head of U.S.

Retail Sales (April to July 2020) at The J.

Smucker Company, a food and beverage company.

Senior Vice President, Sales (2017 to April 2020) at Campbell.

Flávio Barros Torres,

2 unchanged sentences

and Head of Global Operations (January 2020 to December 2021).

Vice President Supply Global (2017 to 2019) at AB InBev.

Global Operations Vice President (2017 to 2019) at AB InBev.

Melissa Werneck,

Executive Vice President and Global Chief People Officer

50 Executive Vice President (since December 2021) and Global Chief People Officer (since 2016);

51 Executive Vice President and Global Chief People Officer (since December 2021);

Global Chief People Officer (2016 to December 2021);

and Head of Global Human Resources, Performance and Information Technology (2015 to 2016).

Senior Vice President, Global Head of Corporate Development;

Global Treasurer

43 Senior Vice President, Global Head of Corporate Development, and Global Treasurer (since March 2022);

Global Head of Treasury and M&A (April 2021 to March 2022);

and Senior Vice President, Global Treasurer, and Head of Global Business Excellence (July 2020 to April 2021).

Senior Director, Corporate Treasury and Risk Management at Whirlpool Corporation, a major home appliance company (2016 to April 2018).

Available Information

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business