Kraft Heinz is planning to spend $3 billion to upgrade its domestic manufacturing, executives at the consumer products company said in a newly published interview.
As of about midday on Wednesday, Kraft Heinz had not confirmed Reuters’ reporting by way of an official announcement published on its website or a Securities and Exchange Commission filing.
Representatives of Kraft Heinz did not immediately respond to a request for comment from The Epoch Times.
The tariffs, which vary by country of origin and product type, currently sit at about 10 percent. Kraft Heinz factored the tariffs into its decision, Navio said in the interview, adding that the move will help secure the company’s market share for the long term.
Primarily, the spending plan will help Kraft Heinz, famous for ketchup, condiments, and packaged foods, develop new products and sell them faster.
The company said it expects the investment to create about 3,500 construction jobs where the plants are located, but Navio said he doesn’t expect to need additional Kraft Heinz employees.
The company previously announced its intent to build a new, $400 million distribution center in DeKalb, Illinois, which will create 60 new jobs at that site as part of the $3 billion spend.
Kraft Heinz owns the Maxwell House coffee brand and, according to Reuters, is paying a tariff on imports related to that business. Otherwise, almost all of what the company sells in the United States is produced domestically.
For the year, the value of Kraft Heinz’s stock has declined by about 11 percent to the current price of about $27.20 per share from the opening Jan. 2 price of $30.95. The price has declined by 24.7 percent from $36.67 a share at the open of trading on May 14, 2024.
In its most recent quarterly earnings report, published on April 29, the company reported a net quarterly income, or profit, of $714 million on about $6 billion of net sales. Both figures are down from the same quarter in 2024, when the company reported a quarterly net income of $801 million on about $6.4 billion in net sales.
In its quarterly press release, Kraft Heinz CEO Carlos Abrams-Rivera announced the company was lowering its “full-year outlook” to “better reflect potential outcomes.” The company announced it expects its “organic net sales” to decline between 1.5 and 3.5 percent, which was a drop from a forecast of a 2.5 percent decline.
“We’re closely monitoring the potential impacts from macro-economic pressures such as tariffs and inflation,” Abrams-Rivera said in a release.
