The Kraft Heinz Company will combine its U.S. and Canada businesses to create the North America Zone, which is expected to be effective in the second fiscal quarter of 2022. The move is meant to advance the global food and beverage leader’s long-term, sustainable growth plans by bringing increased agility to its innovation agenda, operations, and go-to-market approach.
The company’s U.S. and Canada businesses accounted for approximately 80% of its 2020 consolidated net sales.
In the last 12 months, Kraft Heinz has taken multiple steps to transform its overall growth profile, strategic focus, and financial flexibility, including divesting certain assets in its global cheese and nuts businesses. The company has also centered its business around a consumer-first approach, significantly investing in its portfolio, digital solutions, customer relationships, and people.
The company believes the creation of the North America Zone will further fuel Kraft Heinz’s vision to leverage its scale through improved agility for competitive advantage. Structural changes to support the strategic plan are aimed at streamlining and synergizing the U.S. and Canada businesses. This evolved model is expected to help the North America Zone pilot high-value products, processes, and service innovations, backed by the resources of the two countries, while also increasing speed to market.
“As consumer, customer, and employee needs change, we must be in a position to anticipate, adjust, and respond with speed,” said Miguel Patricio, CEO of Kraft Heinz. “Combining our U.S. and Canada businesses—two dynamic Zones—gives us a distinct advantage and will produce faster, more effective results so we can continue investing in our strategic plan and driving sustainable growth. While this is an evolution to our structure, it is part of a broader revolution in how we will work at Kraft Heinz going forward.”
Kraft Heinz’s new North America Zone will be led by Carlos Abrams-Rivera, currently U.S. Zone President. Since joining Kraft Heinz in February 2020, Abrams-Rivera has been instrumental in reigniting growth in the U.S. business, the company’s largest Zone. Abrams-Rivera will assume the title of North America Zone president.
Kraft Heinz, which operates among multiple food channels, is the sixth largest turkey producer in the United States. It is the parent company of Oscar Mayer.