The Kraft Heinz Company (NASDAQ: KHC) said all the right things in its strategic transformation plan revealed on Tuesday. The struggling organization's new operating model prioritizes people as well as profits. Organic net sales growth projections of 1% to 2% are expected to improve per-share profits at a pace of 4% to 6%. Product categories have been assigned specific roles within the company's portfolio, and a 30% increase in marketing and advertising spending will be offset by $2 billion worth of "gross productivity efficiencies."
The problem? This is the same basic plan CEO Miguel Patricio was talking about in February of this year (and had hinted at as far back as last year) shortly after he took the helm. These initiatives won't be any easier to accomplish now than they were then, and they still might not get the job done.
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