Unilever (UN) Q3 2016 Earnings Call

Unilever (UN) CFO Graeme Pitkethly said global growth remains anemic with Latin America being a notable laggard

“Overall, it is fair to say that the economic fundamentals remain weak and volatile. Since the start of the year, we’ve been flagging that we expect market conditions in Latin America to worsen. And that’s what we have been seeing. Just as in past cycles when currency is weaken the cost of living goes up faster than income and people either cut back on purchases or they down trade. Latin American markets are growing in local currencies through pricing. But consumer demand measured by market volume contracted by 10% in Brazil last quarter and fell by 7% in Argentina.”

Volume growth down in Asia

“In Asia, we’ve had a few quarters of very low price growth as commodity costs have been benign. This is now turning. Palm oil is up almost 70 percentage points over the last nine months and Brent crude is back over $50 per barrel. In categories like skin cleansing and laundry, this means a rebalancing of the growth mix with more pricing and less volume as the increases are put through. All these mean that for the moment aggregate market volumes in emerging countries are now slightly down on the same period last year.”

Benefitting from the trend of urbanization

“In Foods, our biggest opportunity is to develop the emerging markets. Already a €5 billion business for us that has been growing at more than 7%. Demand for our categories will only continue to increase as populations become more urban with more kitchens and with more women moving into paid employment. We are particularly well placed to meet this demand with the broad distribution reach we can command with our portfolio.”

Their Chinese e-commerce business has tripled in the last 2 years

“In China, sales were flat in the first half year but were slightly down in the third quarter. The market channel structure is shifting rapidly to e-commerce. Two years ago, this was just 3% of our sales, today it’s over 10%. By cutting out intermediaries like wholesalers this shift results in a structural reduction in trade stock levels. And this is likely to continue for some time to come.”

Not expecting the market conditions in the 4th quarter to look any different

“We are not expecting improvement in market conditions in the fourth quarter and indeed markets are likely to remain volatile and hence challenging for a while yet.”

Coca-Cola’s (KO) Management Presents at Barclays Global Consumer Staples Conference Notes

All North American operations will be refranchised by the end of 2017

“in North America we are still on track to meet our accelerated objective of refranchising the entire system that we hold by the end of 2017. 2017 will be a big year for transactions, there will be a lot of favorite structural adjustments during that year.” James Quincey – President and Chief Operating Officer

 

Most refranchised US territories continue to outperform even after initial 12 months

“And in the US the vast majority of the territories we refranchise for more than 12 months continue to outperform… And that’s led to North America business in its total aggregate to maintaining what we can see to be top quartile CPG revenue performance not just in beverages but across all CPG in terms of revenue.” James Quincey – President and Chief Operating Officer

 

Globalization, urbanization, and middle class growth are driving growth in the beverage industry, and there is plenty of market share left to aim for

“I think it’s worth saying we continue to see abundant opportunity in the beverage industry. The long-term growth of the beverage industry is being propelled, yes, by globalization, urbanization, the growth of the middle class as much as that gets buffeted in the short term, it is still there as a long-term trend… there are still plenty of market shares to continue to go for and to continue our steady run of gaining market share quarter after quarter.” James Quincey – President and Chief Operating Officer

 

Variation in drink size and ingredient content while maintaining one brand is KO’s strategy for adapting to health trends

“It is about responding to…  people’s desire whether it be more natural ingredients, whether it be for the desire for less sugar, less calories, more of a treat, we have brought all these pieces together… it is about marketing smaller packages, more premium packages, more affordable small packages… They prefer to come in at 6 or 8 or 12 ounces. So the smaller packages works from revenue point of view. It also works to help shape choice from a consumer obesity point of view. The one brand strategy takes us from ineffective way of talking about four different brands and if you grew up drinking Coke Classic and you wanted to switch to Coke Zero you almost have to change brand and change your lifestyle. Now the idea of the one brand is you can enjoy Coca-Cola the whole of your life and you can have it in different product variants as you want to mix and match whether it is caffeine or sugar or whatever.” James Quincey – President and Chief Operating Officer

 

A strong premium category has emerged in water

But while we are absolutely seeing in many parts of the world is the premiumization of stratification of the water category. Whether that in some parts of the world with smartwater so smartwater is a runaway success in US. James Quincey – President and Chief Operating Officer

Kraft Heinz (KHC) Q2 2016 Earnings Call

Kraft Heinz (KHC) CEO Bernardo Hees said he is somewhat satisfied with the company’s recent performance but he thinks they can do better 

“On our last call I said that we’re off to a good start. Good. Not great. And I think that’s how I should describe the first half of the year as well. It’s true when you look at our top line performance and our progress in delivering profitable sales growth. The investments we have made in our global sauces franchise continued to improve category growth or market share gains in United States, Canada and Europe.”

Cited the competitive environment in the food sector as intense right now

“As an industry we are in an environment where retail competition is intensified in our biggest and most mature markets, including the United States, Canada, the U.K., Continental Europe and Australia. Nowhere this is more true than the U.K. where key category declines have been at significant drag in the first half even though our market share trends have been improving. In this market, we must remain disciplined with our go-to-market activities, constantly balancing price, promotion and distribution while we innovate to build our brands and drive profitable growth. And as we have seen, this sometimes leads to a bumpy ride on a quarter-to-quarter basis.”

Two biggest geographic regions, US & Europe, shrunk on an organic revenue basis

“But 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. Specifically in two of our biggest segments, we were down on an organic basis. Down roughly 1% for the first half in the United States, and down 3% in Europe, resulting in 0.3% total company organic growth for the first six months. So as far as top line goes, like I said, okay, not great.”

Kraft Heinz (KHC) Chief Operating Officer Georges El-Zogbhi laid out their priorities for the rest of the year

“For the balance of the year, our key objectives will be two-fold. First, we must continue to execute our footprint integration while minimizing disruption. Second, we will step up our in-store activity, including a strong agenda of new product introduction we have planned for the second half. Look for new product introductions in our desserts, cheese and frozen categories in the months ahead, which follow the rollout of our new Devour frozen meal this past month.”

Kraft Heinz (KHC) Chief Operating Officer Georges El-Zogbhi said the packaged food environment has decelerated further

“The challenging environment is nothing new. However, it accelerated a little bit over the past 12 months or so. And the way we are dealing with that is by investing more in new product development program in line with where consumer trends are now, and where they are going in the future. And we’re increasing our investment and supporting our big brands. This is the best way to deal with consumer. The one thing we’re not doing is throwing money to try to get quick sales. We are resisting that temptation, and we believe it’s better for us in the long term to invest in sustainable growth.”

 

 

AB Inbev (BUD) Q2 2016 Earnings Call

AB Inbev (BUD) CEO Carlos Briton on dealing with the volatile Brazil economy

“In terms of Brazil, we’ve been doing business there for 27 years and net/net it has always been a great market for us. So we continue to be bullish on Brazil, but we know that it’s not a straight line up, but it’s up. But every five years or so, you have one or two years where things go sideways or backwards, but then that’s when you have to take advantage and look for those silver linings.  So, again, we’ve been through tough times before, but it’s a great time when some of our competitor sometimes take a pause, that we accelerate and do the things we need to do, because we’ve always been bullish and there are many reasons to believe on that, that I just mentioned. That’s Brazil. But you’re right, this year is going to be a tough one and as the political macro situation gets cleared up, consumers, of course, will get more confident and go back to their normal behaviors. If you look at the financial markets in Brazil, currency and stock markets and all that, they tend to signal that first and that’s where they are at this point.”

Importing beer from the US into Mexico

“We have to bring Bud Light from the U.S. into Mexico because we do not have enough capacity to produce Bud Light locally and that of course also puts more strain on our logistics costs.”

Focusing on selling premium beers into the Chinese market

“in terms of China, we’re very happy with the business we have there. We made, many years ago, made a decision to go high-end in China. When we got together with them, 2008, we kept that very smart decision they made in China. Today, we lead the premium segment in China, we lead the super-premium segment in China and we’re very well positioned in the core-plus segment. That’s where we put most of our investments and that’s where the growth is coming from. We’re very happy with it because we see our business continuously gain share, margin continuing to be accretive and to continue to go up and it’s very healthy and it’s organic.  It would make no sense for us to grow in the opposite direction, trying to add more core and value brands to our business.”

AB Inbev (BUD) CEO Carlos Briton on the company emphasizing the non-alcoholic beverage space

“We put out there 10-year commitment on our side of having 20% of our volume in 10 years, checked, of course, every year, in non-alcohol and low alcohol beers. This is a great opportunity, not only because there is a consumer trends there from some groups of consumers going to that direction, but also because our brands can extend in that domain. If you look at some markets in Europe, for example, where the beer industry has declined, the segment that’s growing the most, even in Brazil, that can also be said, is the low alcohol, no alcohol beer. Our brands can do it, our asset base can manufacture those beer brands and it’s something that can be very interesting in terms of enlarging the pie of consumers that connect and stay within our franchise.”

 

Former Coca Cola (KO) CEO Roberto Goizueta on why companies exist

Former Coca Cola (KO) CEO Roberto Guizueta, who was CEO of the company from 1980 to 1997, wrote an essay on why companies exist called “Why Shareowner Value.”  

“At the Coca-Cola Company, our publicly stated mission is to create value over time for the owners of our business. Of course, there are plenty of other missions upon which a company could focus: serving customers; pursuing philanthropy; providing the highest quality of products and services; creating jobs and job security. But I would submit that in our political and economic system, the mission of any business is to create value for its owners. In the wake of huge layoffs at certain companies, this idea has been vilified by many critics, and doubt has arisen in the minds of many business leaders about their purpose. This is incredibly dangerous to the companies whose lead ers doubt their purpose and to the society that those companies serve.  So why is creating shareowner value the right mission for our businesses? There are three basic answers to this question: Increasing shareowner value over time is the job society demands of us.  Increasing shareowner value enables us to contribute to society in meaningful ways.  Focusing on creating value over the long term keeps us from acting short-sighted.”

“Our society is based on democratic capitalism. In such a society, people create specific institutions to help meet specific needs. Governments are created to help meet civil needs. Philanthropies are created to help meet social needs. Churches are created to help meet spiritual needs. Businesses such as ours are created to meet economic needs. The common thread between these institutions is that they can flourish only when they stay focused on the specific need they were created to fulfill. When institutions try to broaden their scope beyond their natural realms, when they try to become all things to all people, they fail.  While society institutions remain healthy when driven by their core purposes, society remains healthy when supported by all of its institutions.”

Kraft Heinz (KHC) Q1 2016 Earnings

Kraft Heinz (KHC) CEO Bernardo Hees said some of their categories are underperforming their expectations

“We’re off to a good start, good not great. As expected, some headwinds hung around, including consumption trends in some key categories that held us back.  On our last call, we spoke about plans to address categories such as U.K. soups, U.S. mac & cheese, ready-to-drink beverage, and frozen nutritional meals. And while we’re making progress against those opportunities and expect better performance as the year unfolds, they held back our results in Q1.”

Said the retail food environment is still difficult

“We were also able to improve our sales and go-to-market execution in what remains a challenging retail environment.”

Saw strength in the dollar store and club channel 

“We saw solid growth in our foodservice business and non-traditional retail channels like club and dollar stores. This is consistent with the business development or whitespace opportunities I mentioned on our last call. Much of it has been enabled by the combination of the Kraft and Heinz foodservice teams, and we should continue growing in coming quarters.”

Said that some of their categories are missing the mark from a consumer trends point of view

“I think where we are underperforming, it’s largely sometimes we are missing the mark from a consumer trends point of view rather than having a different business model. Our business model applies to all categories similarly. So from a relationship with retailers, we believe we have a very strong relationship, we have a positive relationship and we see a positive outlook there. The most important things between us and our retailers and in my discussion with many of them was whether we can maintain the service level up or not. And we have demonstrated not only we can maintain the service level and the Case Fill Rate, but we actually increased it and we feel good about that.”

Doesn’t expect the US market to grow significantly from here

“There are a lot of headwind coming at us as you know that is putting downward pressure on sales, because historically in the U.S. market the growth did not come from volume. If you look back for the last number of years, it came from inflation and that inflation was based on commodities inflation.  Now, we are living in an environment where there is no inflation in commodities, so it is harder to be able to say, to have a bullish approach to grow. What we said, and we’ll continue to maintain, that we would have stable top line. And as you know, we have an exposure to a large number of commodities, so it’s very hard to put exact number to it, but we feel that stability for us is a very good outcome.”

Whole Foods (WFM) Fiscal Q2 2016 Earnings

Whole Foods (WFM) Co-CEO John Mackey said the company’s grocery delivery partnership with Instacart makes them one of the largest grocery delivery companies that delivers to the home in the US

“Instacart has recently expanded to Orange County, Baltimore, Charlotte, and San Antonio, with additional markets coming soon. Collectively, Whole Foods and Instacart deliver fresh groceries to more households in the United States than anyone else.”

Whole Foods (WFM) CEO John Mackey said their new 365 store offering is focused on lower prices but still maintaining the high quality of food

“Created to complement our Whole Foods Market stores, our new 365 format will offer our same industry-leading standards and dedication to food transparency, delivered in a new way. The streamlined format is designed around affordability and convenience and will be supported by enhanced digital experiences. We believe there is customer demand for both formats, and as a second growth vehicle, 365 allows us to attack the value-quality proposition in a new way, while maintaining the integrity the Whole Foods Market brand represents in the marketplace. We are excited to get our first three stores open and to learn and evolve from there.”

Comparable store sales continue to decline

“Turning now to our updated outlook, we expect to be at or below the low end of our prior sales and earnings per share ranges. While we beat our bottom line expectations in the first half of the year, primarily through better and projected leverage in salaries and benefits, our comp trends have yet to stabilize. We’re hopeful that comps will improve over the course of the year as our sales building initiatives gain traction and our comparisons get easier.”

Saw continued user engagement with their app

“We’ve significantly increased the number of users for our app, so in addition to both using the coupons, we have a more engaged customer is now leveraging our app for the other utilities that we’re providing. Our intention at this point is to continue to add features to our app, inclusive of the digital coupons leading up to our affinity rollout, which we will be piloting our next city up in Dallas, and then doing our national rollout following that test.”

Whole Foods (WFM) Co-CEO Walter Robb said they are trying to reimagine the story experience from beginning to end

“I think if we look at our business, we say we were the ones that put a lot of energy and time into the customer experience, into the retail experience, into the store experience. And we had such a pretty strong regional structure and I think were, as a result of this crossroads and transformation we’re going through, we’re looking at all the systems that supports the processes on how we do work and how we’re structured, everything from soup to nuts, really, looking at everything in terms of how we can simplify, eliminate redundancies, do work differently, find more savings through just streamlining the organization.”

They believe their commitment to the culinary experience is a competitive differentiator

“I also want to share the fact that our commitment around culinary is really what separates us compared to the competition, and so we have the leadership now in the company to bring that focus and that commitment to really developing new programs. We have the friends of Whole Foods Market, which are bringing really great restaurant concepts into our stores. And having these partnerships that create a unique experience from a culinary standpoint. That really is, by far, above anything that we’re competing against right now. So we really feel like the renewed focus on culinary in our stores is a big, big differentiator for us as a company.  Our stores are very different than our competitors, and we’re not standing still.”

Think their core customer remains loyal to the brand

“I would say very pleased that the core shoppers continues to stay with us, and is staying pretty consistent frequency and also basket. Where the erosion has happened, it simply has, and the comeback will happen, is also what we more broadly call the occasional shoppers who come in at different frequencies and for different amounts. And that’s where I think folks may be perhaps where we’ve seen a little bit more inconsistency. So that’s the answer.”

Unilever FY 1Q16 Earnings Call Notes

Graeme Pitkethly

Business environment has proven to become more challenging

“In January, we said that we were prepared for the business environment to become even more challenging and that has proved to be the case. In Europe, markets continue to decline with stable volumes but falling prices; while in North America growth in our categories has eased back to only around 1%. In Brazil and Argentina, market volumes are contracting as consumers struggle with rising unemployment and the high local inflation brought on by currency adjustment.”

Prices and volumes across categories are flat but trading up and trading down beneath surface

” Looking on aggregate and taking a broad global average, market volumes in our categories are flat and pricing is around historic norms. But within these aggregates we continue to see some strongly diverging trends. Many consumers are up-trading to higher value items for at least part of the daily or weekly shop. Well at the same time those consumers are looking to economies by down-trading for other purchases.”

Comps do get tougher in the second half of the year

“The Group comparators do get tougher in the second half of the year, but we remain confident of delivering against our objectives, which remain unchanged.”

The UK has been a particularly competitive environment

“in the UK, the market was particularly tough as an environment, but in Q1 we did see good volume growth and some value share gains, but that was all offset by price deflation. I don’t want to go specifically based on one quarter into details of the UK’s performance, but it’s a continuation of a very, very competitive marketplace across all categories. You’re aware of the consumer changes in the UK, very value conscious, continued growth of discounters, but above all very competitive on a high level of the promotional intensity, which was particularly sharp in the first quarter.”

North America continues to see a bit of trade destocking

“Obviously North America, and I will let Andrew have a bit of a think about the sequencing of cost versus benefits for the programs, if I may. First of all, your question about sellout, we do continue to see a little bit of trade destocking in North America. Sellout continues about 2%. Our selling is about flat, so that’s our main litmus test of the impact that exists there. To get into the balance between what’s winning and what isn’t so much rather than HPC in foods and personal care, we are seeing pretty – we are continuing to see share gain driven by deos and hair, but we are down in skin and oral. And overall share gain in North America has been driven by refreshments and PC. Foods is declining a little bit as you said driven by spreads. I don’t want to get into the detail on a quarterly update of really with spreads by geography.”

Consumers have been trading up in India

“The consumers are trading up and down. The example, if I go across categories perhaps where we see that more strongly could be in personal care and home care. They’ve all been expensive category, home care in particular and just wanted to share the example of laundry in India where I was a couple of weeks ago and the more fundamental, because I mean India has been less impacted, stronger economy, currency less impacted and therefore the deflation that we’ve seen in a couple of categories in India is much more function of the commodity cycle, but more fundamentally in the laundry business in India, a brand like Surf Excel, a little bit above we are continuing to see consumers trade up from the bottom brand of [indiscernible] into a position like Surf Excel and that thinking more longer term is exactly the sort of thing we expect to see and continue in very much what our strategy is focused on.”

Andrew Stephen

Costco (COST) Q2 2016 Earnings Call Notes

Costco (COST) CFO Richard Galanti said weaker international currencies continue to impact their earnings results 

“During the quarter the foreign currencies where we operate continue to weaken versus the U.S. dollar in all countries but primarily in Canada, Mexico and Korea, resulting in our foreign earnings in the second quarter when converted into U.S. dollars being lower by about $32 million or $0.07 a share and if exchange rates had been flat year-over-year.”

And lower gasoline prices hurt their overall revenue

“For the quarter, sales negatively impacted by gasoline price deflation to the tune of 80 basis points.”

They are seeing more deflation than inflation of across the goods they buy

“Final comment on deflation. Beyond gasoline price deflation that we’ve always pointed out each month, we have seen a little additional deflation across many merchandise categories such that sales have been impacted a bit by – a little bit more in the past couple of months.  in the U.S., we’re seeing deflation in the low-single digit range for foods, sundries and fresh foods, and now, again, a little bit more on the non-food side as well.”

Seeing strong membership renewal rates

“And in terms of membership, renewal rates remain strong; 91% in the U.S. and Canada and 88% rounded up in worldwide. Continuing increasing penetration in the Executive Member I think helps that. New membership sign ups in Q2 company-wide were up 4%.”

Costco (COST) CFO Richard Galanti said they are raising starting wages for the first time since 2007

“This year we’re also changing the starting level or entry level hourly wages. This is the first change to the entry level wages in nine years. Since 2007 our entry level wage in U.S. and Canada was $11.50 or $12 an hour. Effective this month in the U.S. and Canada, we’re increasing our starting wages from $11.50 and $12 to $13 and $13.50. So up a dollar and a half.”

Their E-Commerce business is growing at a substantial rate

“Next, Costco e-commerce, Costco online. We’re now in six countries, having recently opened in Korea and Taiwan. We’re also of course in the U.S., Canada, U.K. and Mexico. For Q2, sales and profits were up over last year. Our total sales were up 19% in the quarter, up 22% ex-FX and on a comp basis, up 18% reported and up 21% ex-FX. So continued good results in terms of growing our e-commerce efforts.”

Costco (COST) CFO Richard Galanti said they look at their stock price to time their stock buyback program

“During the first five weeks of the past quarter, very little stock was repurchased. In fact, of the total $80 million, $3 million of the $80 million was purchased in the first five weeks, and the remainder, the vast majority was in the last seven weeks. And that’s purely a function of how we do it. We look at kind of a matrix pricing. As it goes up a little, we buy a little less, when it comes down a little, we buy a little more. As long as we feel comfortable about our runway, I think we’ll continue do that.”

Continuing to change product mix to increase frequency of customer visits

“The fact that we keep adding some gas stations is driving frequency. I remember years ago, I’ve heard for 30 years, now that this thing is maxing out, fresh foods or gas stations, whatever it is, we keep figuring out new things. And I feel good about some of the things we’re doing in a lot of the non-foods categories. Fresh foods never ceases to amaze me, and we’ll keep going.”

They say E-Commerce doesn’t affect their business as much as it would other retailers

“I’m sure there’s somebody that made one less trip to Costco because they bought something online or somewhere else. But I think we’re still doing a pretty good job of getting them in the door particularly with fresh foods, with gas for the Executive Member with a quality co-brand offer in terms of rewards. So all those things help.  And some of those pieces, we’re not going take. We’re not going take the single unit items, some small-value food and sundry things that are going to be delivered to your door by 7 in the morning if you ordered six hours earlier. That’s not us. We can’t do that at 10% and 11% margins. We’re taking little pieces of other things.”

Costco (COST) CFO Richard Galanti highlighted which items are seeing price decreases

“So again, that would indicate to me again we’re seeing a little bit more deflation. I can give you crazy numbers on given items. On a year-over-year basis, when you look down, just candy. M&Ms down 10% year-over-year. American single slices of cheese down 15%. Bacon down 20%”

Organic food is now a large and still growing category

“Yeah, we’re about $4 billion, which was I think in the last two years, it was up 30%-ish. And we’re on task, I think our goal this year to have a double-digit number that has a two in front of it, and we feel good about it. We are I think doing as good a job as anybody in terms of sourcing. And part of the challenge is availability. And the industry is growing, needless to say. There are more farmers and more poultry producers and more beef producers that are committing more to this. And we’re certainly out there literally in the fields here and abroad getting these growers and processors to do more. So, I think it still has some good opportunities there.”

Kraft Heinz (KHC) 4Q 2015 Earnings Call Notes

Kraft Heinz (KHC) CEO Bernardo Hees stated the recently merged company’s goals

“As you know from our last call, our strategy is based on three objectives: profitable sales growth, achieving and maintaining best-in-class margins, and a superior return of capital as an investment-grade company. This is our multi-year plan on one page, and it is important to understand that not everything starts to deliver at once. In some cases, like revenue management, it’s not a project. We must build an internal capability before we can achieve sustainable results in return.”

One of 3G Capital’s key employee retention and engagement tools is making employees think like owners

We have already made solid investments in our people, promoting more than 2,400 team members worldwide, and introducing a new long-term incentive program that gives many employees the opportunity to increase their ownership in the company. In short, our vision, values and process are building the culture of ownership and empowerment necessary for the long-term achievements of our company.”

They are focusing on increasingly healthier products 

There is ongoing need to drive better consumption in the face of both consumer weakness and consumers’ desire for fresher, less processed food.  Capri Sun Organic is now in the marketplace, with advertising scheduled to hit later in the second quarter. We’re making changes to ensure that Mac & Cheese is more relevant today than ever before, with no artificial flavors, preservatives or synthetic colors. And you will hear us making noise about this very soon. Also, we’re working to improve our nutritional frozen meal offerings.”

Kraft Heinz (KHC) CFO Paolo Basilio cited lower input costs as a tailwind

Net pricing was neutral to favorable in all segments in both Q4, for the full year. This was driven by a combination of price increases and taking out inefficient trade spending, partially offset by lower net pricing related to lower net commodity costs across our big four commodities in the U.S. and Canada. And with dairy prices remaining low, this is something we are likely to see continue into the first half of 2016.”

They are raising prices in Canada to offset higher local costs

That being said, our Canadian business is facing further local cost inflation in many categories, and this month we are implementing additional pricing actions to offset the higher costs.”

Kraft Heinz (KHC) CEO Bernardo Hees expects peer leading margins to emerge from the restructuring

On the cost side, we expect to make significant progress on delivering best-in-class margins through: one, delivering zero based budgeting savings; two, making progress on our manufacturing footprint initiatives; and finally, building a real performance driven culture in Kraft Heinz.”

Kraft Heinz (KHC) COO Georges El-Zoghbi said they focus on profitability over volume

Our focus is on profitable growth. We repeated that a number of times, and we will have some categories where you’ll see volume growth. And while we have other categories where you’ll see a volume decline, overall, because of our size and the diverse businesses and categories we operate in, we will probably reflect what would go on in the marketplace.  You have seen a lot of activity in this area in making, reformulating products to reflect the consumer trend.”