Kraft Heinz beat first-quarter revenue and profit estimates on Thursday, a year-on-year increase in demand for consumables including lunchbach crackers and kraft macaroni and cheese, even as the US economy slowly reopened.
After the stock gained 3 percent in midday trading, the company forecast current-quarter organic net sales to grow by mid-single digits.
The epidemic-inspired curse that led people to eat at home and rely on packaged food proved to be a boon for the Chicago-based company, which is struggling with TEDID sales and writing billions of dollars worth of many brands Was forced to. Last two years.
However, the rise in demand and reserves due to a resurgence in COVID-19 cases has led to a spurt in prices of commodities such as sugar, wheat and soy, with Kraft anticipating mid-single-digit levels of inflation in 2021 is.
Meanwhile, the company is investing in the United States to close gaps in the supply of Heinz ketchup pouches, Mac & Cheese Cups and Clausen pickle jars as demand picks up.
“By July, we will have 25 percent more capacity in the pouch and are not foreseeing more problems,” Miguel Patricio, the chief executive, told Reuters in an interview.
He said Kraft for Heinz bottles had built the capacity to meet the pantry loading trend in the early months of the epidemic, but saw a change in demand due to the health crisis.
Patricio said that the capacity for the Mac and Cheese Cup is also increasing, due to its decision to introduce it into a more eco-friendly, compostable cup.
Claussen pickles and cucumbers have also been in short supply, he said, due to a problem with the supply of glass jars.
“We’re holding on to that.”
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