The trick to success isn’t always to have a hand in every basket. Rather, a streamlined strategy that plays on a company’s strengths can be just the ticket to a beneficial bottom line. Food giant Kraft Heinz is discovering that this exact strategy could help it continue to grow in an increasingly competitive and ever-evolving food landscape.
“My role is to simplify this business. Fewer, bigger bets,” Miguel Patricio, Kraft Heinz’s new Chief Executive Officer, said to the Wall Street Journal, alluding to the company’s new strategy that includes honing in on a simplified product lineup rather than an expansive one.
According to the news source, Kraft Heinz has struggled in recent years to build on the success of its decades-old brands, which resulted in a multibillion-dollar markdown on big-name items the company has long relied on as its top sellers. Now, with Patricio at the helm, Kraft Heinz is discontinuing low-selling and unprofitable products and instead focusing on cutting the number of new-product introductions in half.
“If you try to innovate in 56 different categories every year, you can’t execute on all of them,” Patricio continued. “We need to be more selective.”
Part of this refreshed product strategy has translated to hiring executives experienced in food, the news source notes. This has included adding the Chief Growth Officer position to Kraft Heinz’s C-suite.
“First, we had to stabilize the business. Now, we are building a strategy for the future,” Patricio concluded.
With Kraft Heinz zeroing in on what it does best, how will it carve out a niche in the market and stay competitive with its top rivals? Deli Market News will continue to report on the latest in the food space.