Some Kraft Heinz factories are doing work three shifts a day to meet enhanced need for its products as stockpiling for the coronavirus pandemic has still left quite a few grocery shop shelves bare.
“I have to say that our teams in our factories, in our distribution programs, are amazingly happy and knowing of the obligation they have forward of them,” CEO Miguel Patricio explained to CNBC’s Sara Eisen on “Squawk Alley.”
Patricio said that he visited an Oscar Mayer manufacturing unit in Davenport, Iowa yesterday. The staff there informed him that morale has never ever been so large, he stated.
In latest several years, Americans have prevented purchasing shelf-steady foods uncovered in the centre of the grocery shop, alternatively opting for new, organic alternatives. The shift in buyer tastes has led common food stuff companies, these as Kraft Heinz and Campbell Soup, to see income decline. But the stress about the coronavirus has intended U.S. individuals are after all over again achieving for items like Kraft Macaroni & Cheese.
Kraft Heinz claimed in February that it would unveil its turnaround approach in May well. A calendar year previously, the foodstuff giant wrote down the worth of its iconic Kraft and Oscar Mayer brands and surprised Wall Street by reporting a quarterly reduction.
Patricio stated that the business drew down its $4 billion revolving credit score line as a precautionary evaluate.
“Appear, our demand from customers is potent. And our hard cash movement and harmony sheet is really solid as perfectly,” he mentioned.
Shares of Kraft Heinz rose much less than 1% in afternoon investing on Friday. The inventory is down 30% so far in 2020.