Kraft Heinz 2Q16 Earnings Call Notes

The Kraft Heinz (KHC) Bernardo Vieira Hees on Q2 2016 Results

A number of categories where consumption trends going against us

“our biggest challenge remains the fact that you continue to have a number of categories where consumption trends are working against us. And while we’re making progress against those opportunities and expect better performance going forward, our organic sales growth during the first half of the year was held back.”

Coffee market is a tale of two segments, pod and roast/ground

“The pods is a very healthy business. And it’s been growing now for years. However, the growth has subsided a little bit. It moved from the double-digits that we all used to see to mid-single digit growth. And that is a very healthy category. And as you know, we innovated greatly in this category over the past few years. And we continue to do so. In roast and ground, the category has been in persistent decline for quite some time, as consumers are moving into the more premium and the pods business. The way we are dealing with this, we will bring some innovation to this category.”