Kraft Heinz looks to revamp Oscar Mayer brand, cut 20% of products, as it rethinks business

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Shares of Kraft Heinz were up 1% in afternoon trading after the company presented its long-term turnaround plan to investors.

"We need to make sure that going forward, we have the right balance of innovation and renovation," Kraft Heinz's head of U.S. business Carlos Abrams-Rivera said in an interview.presented its long-term turnaround plan to investors

. As its blueprint is implemented, the company is projecting long-term organic sales growth of 1% to 2% and adjusted earnings per share growth of 4% to 6%. In the past, according to Abrams-Rivera, Kraft Heinz would create small brands in response to new consumer trends. But its new strategy will focus on applying those insights to existing products, like making its signature mac and cheese without any gluten rather than kickstarting a new brand. New products and brands will be fewer but much larger than previously.

"When you stand back, what you're going to find is, we're going to be more focused around 60% of growth coming from innovation and 40% on renovation," Abrams-Rivera said. Oscar Mayer is among the brands that will be receiving a facelift after the company wrote down its value in the fourth quarter of 2018 and again in its most recent quarter. The hot dog brand's planned renovation includes new packaging, simpler ingredient lists and marketing that focuses on its status as an iconic American brand.

 

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