Despite Macro Angst, Kraft Heinz Prudently Stays the Course by Upping the Ante on Brand Spending
The 2015 Kraft Heinz merger has yet to deliver lasting improvements in sales and profits. However, newly appointed CEO Steve Cahillane sees opportunities to invest in its brands and capabilities, with the incremental investment now set at $700 million. With this as its prime directive, he's put the pending plans to split the business on ice. We never thought that separating its operations would bring an enhanced level of focus that would ultimately boost its competitive position or financial prospects. While we view this strategic pivot favorably, we recognize it will take time for the benefits of this increased spending to materialize.
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