- The Kraft Heinz strategy of the past, of mergers and subsequent cost-cutting, proved to be a mistake. New CEO steered the company towards brand investment, which is more sustainable.
- Kraft Heinz brands are facing stiff competition from store brands that are increasingly dominating the processed foods isle of the very retailers that Kraft Heinz depends on for sales.
- The entire processed foods sector is facing a rough market, given shifting consumer preferences towards more fresh foods as well as organic, gluten free as well as other health-related labels.
- The new course taken by Kraft Heinz makes it a good investment for those looking to collect dividends from a non-cyclical company. It will not help investors recuperate the stock value losses of past years.
For further details see:
Sold Kraft Heinz Stock, Incurred First Major Trade Loss In 15 Years