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Kraft Heinz's (KHC) Extended Alliance With BEES to Fuel Growth

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The Kraft Heinz Company (KHC - Free Report) has been committed to expansion, as evident from its latest move to digitalize the sales process and fuel growth in Latin America (“LATAM”). The company unveiled an extended alliance with BEES to spur the B2B marketplace and boost points of sale in the region. KHC is particularly focused on strengthening its footprint in Colombia, Mexico and Peru.

Formed by AB InBev, BEES is an e-commerce platform that speeds up digital growth for retailers across AB InBev’s international footprint and distribution channel. BEES recently welcomed several CPG companies to list their products in its marketplace.

The abovementioned deal will help Kraft Heinz get access to retailers that were previously not reachable. Meanwhile, it will help grocery store chains, small "mom & pop" shops and foodservice organizations browse and stock a wide range of Kraft Heinz products.

The deal is likely to help Kraft Heinz enhance its Emerging Markets strategy by boosting the points of distribution and also increasing the number of items available to retailers across that region. Management stated that Emerging Markets are core to Kraft Heinz’s growth strategy, and the company is focused on undertaking prudent alliances and investments to take it forward.

Kraft Heinz Company Price, Consensus and EPS Surprise

Kraft Heinz Company Price, Consensus and EPS Surprise

Kraft Heinz Company price-consensus-eps-surprise-chart | Kraft Heinz Company Quote

What’s More?

In September 2020, Kraft Heinz laid out a new operating model that incorporates five key elements. These include People with Purpose, Consumer Platforms, Ops Center, Partner Program and Fuel Our Growth.

The Consumer Platforms represents a portfolio of six consumer-driven platforms like Taste Elevation, Easy Meals Made Better and Real Food Snacking, among others. The company’s top-line momentum is driven by three pillars of growth, including Consumer Platforms, Foodservice opportunities and further expansion in Emerging Markets.

For growing the Emerging Markets, management is on track to expand its presence via a sustainable and repeatable Go-To-Market model. In April 2022, KHC acquired a majority stake in a Brazil-based condiment and sauce company — Companhia Hemmer Industria e Comercio (Hemmer).

In January 2022, Kraft Heinz acquired an 85% stake in Germany-based Just Spices GmbH (Just Spices). Management acquired the sauce-focused business — Assan Foods — from the privately-held Turkish conglomerate, Kibar Holding, in October 2021.

The Ops Center element enables Kraft Heinz to establish an efficient, fast and integrated supply-chain network. The Partner Program element is designed to create solid customer partnerships and develop new strategic partnerships.

Meanwhile, the Fuel Our Growth strategy is aimed at investing in growth opportunities, solidifying its long-term market position and staying committed to shareholder returns. Also, this strategy helps the company manage its portfolio and accelerate its strategic plan, augment its geographic presence, increase its focus on growth areas and undertake sustainable pricing actions.

All said, Kraft Heinz is set to keep its growth story going. Shares of this Zacks Rank #3 (Hold) company have increased 10.8% in the past six months compared with the industry’s growth of 1.4%.

Solid Food Stocks

Some better-ranked food stocks are Post Holdings (POST - Free Report) , General Mills (GIS - Free Report) and Lamb Weston (LW - Free Report) .

Post Holdings, which operates as a consumer-packaged goods company, currently sports a Zacks Rank #1 (Strong Buy). POST has a trailing four-quarter earnings surprise of 34.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Post Holdings’ current fiscal-year EPS suggests an increase of 111.3% from the year-ago reported number.

General Mills, a branded consumer foods company, currently carries a Zacks Rank #2 (Buy). GIS has a trailing four-quarter earnings surprise of 8.7%, on average.

The Zacks Consensus Estimate for General Mills’ current fiscal-year sales and earnings suggests growth of 5% and 6.1%, respectively, from the corresponding year-ago reported figures.

Lamb Weston, which is a frozen potato product company, currently carries a Zacks Rank #2. LW has a trailing four-quarter earnings surprise of 52.6%, on average.

The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year sales and EPS suggests an increase of 19.3% and 89.9%, respectively, from the year-ago reported number.

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