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Kraft Heinz (KHC) to Buy Assan Foods, Expand Presence in Turkey
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The Kraft Heinz Company (KHC - Free Report) is focused on accelerating its international growth strategy based around Taste Elevation and foodservice platform. In this regard, the company signed an agreement to buy sauces-focused business — Assan Foods — from privately-held Turkish conglomerate, Kibar Holding. We note that the enterprise is valued at nearly $100 million. Management expects to conclude the deal in the second half of 2021.
Assan Foods, which sells a variety of offerings including ketchup, pasta and meat sauces, tomato paste as well as mayonnaise under brands like Colorado, Kingtom and Oba, has local production units in Balikesir and Izmir. Moreover, Assan Foods exports its products to nearly 50 countries along with working in the domestic market.
Well, Assan Foods has been a certified manufacturing partner for the company since 2019. This partnership has been aiding Kraft Heinz’s foodservice and retail business in Europe, the Middle East and Africa. All said, management believes that Assan Foods’ impressive innovations along with its solid distribution network in the booming foodservice channel is likely to help Kraft Heinz expand its brand presence in Turkey.
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Strength in Operating Model
Kraft Heinz is committed to its operating model, which incorporates five key elements — People with Purpose, Consumer Platforms, Ops Center, Partner Program and Fuel Our Growth. Notably, the Consumer Platforms represents a portfolio of six consumer-driven platforms like Taste Elevation, Easy Meals Made Better as well as Real Food Snacking among others. In first-quarter 2021 earnings call, management highlighted that its priority platforms and geographies continued to witness solid growth.
Ops Center element will enable Kraft Heinz to establish an efficient, fast and integrated supply chain network. In fact, management had earlier stated that it expects to achieve nearly $2 billion of gross productivity efficiencies through 2024. Notably, it achieved nearly $400 million of gross productivity efficiencies during 2020. Management, in its last earnings call, highlighted that it expects to deliver $400 million worth of gross efficiencies in 2021 as well. Also, the company notified that its Ops team is on track to expand capacity in critical categories.
Further, Partner Program element is designed to create solid customer partnerships and develop new strategic partnerships. The Fuel Our Growth strategy is aimed at investing in growth opportunities, solidify long-term market position as well as staying committed toward shareholder returns. This strategy will help the company manage its portfolio and accelerate its strategic plan, augment geographic presence, increase focus on growth areas as well as undertake sustainable pricing actions. Keeping this in mind, Kraft Heinz recently sold its nuts business to Hormel Foods Corporation (HRL - Free Report) for a cash price of $3.35 billion. Management believes that the sale of the nuts portfolio is a step closer to achieving its objectives laid out in the transformation plan.
Notably, shares of this Zacks Rank #3 (Hold) company have rallied 26.5% in the past six months compared with the industry’s 12% growth.
Medifast, Inc. (MED - Free Report) , currently sporting a Zacks Rank #1, has a trailing four-quarter earnings surprise of 12.7%, on average.
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Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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Kraft Heinz (KHC) to Buy Assan Foods, Expand Presence in Turkey
The Kraft Heinz Company (KHC - Free Report) is focused on accelerating its international growth strategy based around Taste Elevation and foodservice platform. In this regard, the company signed an agreement to buy sauces-focused business — Assan Foods — from privately-held Turkish conglomerate, Kibar Holding. We note that the enterprise is valued at nearly $100 million. Management expects to conclude the deal in the second half of 2021.
Assan Foods, which sells a variety of offerings including ketchup, pasta and meat sauces, tomato paste as well as mayonnaise under brands like Colorado, Kingtom and Oba, has local production units in Balikesir and Izmir. Moreover, Assan Foods exports its products to nearly 50 countries along with working in the domestic market.
Well, Assan Foods has been a certified manufacturing partner for the company since 2019. This partnership has been aiding Kraft Heinz’s foodservice and retail business in Europe, the Middle East and Africa. All said, management believes that Assan Foods’ impressive innovations along with its solid distribution network in the booming foodservice channel is likely to help Kraft Heinz expand its brand presence in Turkey.
Strength in Operating Model
Kraft Heinz is committed to its operating model, which incorporates five key elements — People with Purpose, Consumer Platforms, Ops Center, Partner Program and Fuel Our Growth. Notably, the Consumer Platforms represents a portfolio of six consumer-driven platforms like Taste Elevation, Easy Meals Made Better as well as Real Food Snacking among others. In first-quarter 2021 earnings call, management highlighted that its priority platforms and geographies continued to witness solid growth.
Ops Center element will enable Kraft Heinz to establish an efficient, fast and integrated supply chain network. In fact, management had earlier stated that it expects to achieve nearly $2 billion of gross productivity efficiencies through 2024. Notably, it achieved nearly $400 million of gross productivity efficiencies during 2020. Management, in its last earnings call, highlighted that it expects to deliver $400 million worth of gross efficiencies in 2021 as well. Also, the company notified that its Ops team is on track to expand capacity in critical categories.
Further, Partner Program element is designed to create solid customer partnerships and develop new strategic partnerships. The Fuel Our Growth strategy is aimed at investing in growth opportunities, solidify long-term market position as well as staying committed toward shareholder returns. This strategy will help the company manage its portfolio and accelerate its strategic plan, augment geographic presence, increase focus on growth areas as well as undertake sustainable pricing actions. Keeping this in mind, Kraft Heinz recently sold its nuts business to Hormel Foods Corporation (HRL - Free Report) for a cash price of $3.35 billion. Management believes that the sale of the nuts portfolio is a step closer to achieving its objectives laid out in the transformation plan.
Notably, shares of this Zacks Rank #3 (Hold) company have rallied 26.5% in the past six months compared with the industry’s 12% growth.
Some Solid Food Bets
Darling Ingredients Inc. (DAR - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 29.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medifast, Inc. (MED - Free Report) , currently sporting a Zacks Rank #1, has a trailing four-quarter earnings surprise of 12.7%, on average.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>