Did you know? Heinz sells a whopping 11bil packets of ketchup a year, which is two packets for every person on the planet, and two billion packets for every person currently in space (six!).
Kraft Heinz Company is the world’s 5th biggest food and drink company, with revenues of more than $26.5 billion. It was created following the merger of Kraft Foods Group and Heinz in the year of 2015. The company is home to 26 well-known brands under its umbrella , including eight well-known brands worth $1 billion including Kraft, Heinz, Oscar Meyer, Philadelphia, Planters, Lunchables, Maxwell House and Velveeta.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Heinz.
Heinz At A Glance – Heinz SWOT Analysis
Company: H. J. Heinz Company
Founders: Henry J. Heinz
Year of establishment: January 1869, Sharpsburg, Pennsylvania, United States
CEO: Miguel Patricio
Headquarters: Pittsburgh, Pennsylvania, United States
Employees (Dec 2020): 38,000
Ticker Symbol: KHC
Annual Revenue (Dec 2020): US$26.19 billion
Profit net income (Dec 2020): US$361 million
Products & Services: Baking & Desserts | Beverages | Cream Cheese | Ketchup | Kraft cheese | Milka and Toblerone chocolates | Planters nuts
Company Website: www.heinz.com
Competitors: Campbell Soup | Del Monte Foods | Treehouse Foods | Altria | Nestle | Kagome Co. | McCain Foods | Kellogg Company
Heinz SWOT Analysis – SWOT Analysis Of Heinz
SWOT Analysis Of Heinz analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Heinz SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Heinz SWOT Analysis. Below Is The Detailed SWOT Analysis Of Heinz.
Heinz Strengths – Heinz SWOT Analysis
1. A strong position in the market position throughout the world: Kraft Heinz is one of the biggest company in the food industry and beverages around the globe. Kraft Heinz has leading market positions in various categories, which confers it with the an advantage in the market and increases its bargaining ability.
2. The Strong Portfolio of Products Portfolio: Kraft Heinz is a reputable brand with 26 well-known brands under its umbrella . It also has eight well-known brands worth $1 billion which include Kraft, Heinz, Oscar Meyer, Philadelphia, Planters, Lunchables, Maxwell House and Velveeta. The majority among these are among the top brands in the world , and can generate sales of up to $1 billion.
3. Global footprint: Kraft Heinz has an extensive footprint across the globe, with strong presence in the developed market and a growing footprint in new markets. Kraft Heinz is present in North America, Asia-Pacific, Europe and Latin America etc. With its extensive and varied international footprint, the firm has managed to reduce the risks to business of dependence on too small number of markets. Furthermore it is able to profit from any opportunities that is created by any market.
Heinz Weaknesses – Heinz SWOT Analysis
1. Recalls of products: Kraft Heinz has also faced several controversies over recalls of products in recent times. As of July 15, 2015, they was forced to recall its wrapped slices. Likewise, in August of 2015 the company was forced to recall several items that contained turkey bacon due to the risk of adulteration. These recalls, particularly in the beverage and food industry can affect the branding image and the sales of the company.
2. Advertisement Disputation: In November 2016 an advertisement by Heinz Beanz was banned for showing the dangers of using cans of tin, as part of the “Lean the #CanSong campaign”. This can affect the reputation of the business.
Heinz Opportunities – Heinz SWOT Analysis
1. Foodservice industry is growing: The foodservice industry is predicted to expand rapidly within the next few years because of increasing living conditions and the rapid growth of urbanization. Any possible demand generated could be fulfilled quickly through Kraft Heinz.
2. Nutritious products: Increasing health awareness around the world leads to an increase in demand for healthy and trans-fat-free items. Kraft Heinz is taking care of the increased awareness of health and has a variety of healthy foods available for both adults and infants. The company needs to be looking to expand its product range to include more healthy products.
3. The market for baby food is growing: With the increase in incomes and a changing lifestyle The baby food market is expanding across the globe. The market for baby food in the world is projected to expand at a rate of 8% until 2019. Kraft provides a variety of baby food products and instant formula products , and will benefit from the growing demand.
Heinz Threats – Heinz SWOT Analysis
1. Competition is intense: Kraft Heinz is confronted with competition from a variety of firms across different geographic regions and product categories. Its main opponents include Nestle, ConAgra Foods and PepsiCo among others. A higher level of competition causes a business to invest more money in promotion and can also trigger price wars that affect revenue and profit.
2. Safety Regulations: The food safety regulations across the world have become more strict throughout the years, which means that food companies must be able to comply with various rules set by food regulatory authorities in different nations. This can increase the costs of compliance for the business.
3. Rising wages for labour: The labour wages in developed nations, particularly those in US, Canada and Europe increase year after year. This increases the cost of doing business and consequently can impact the margins.
Heinz SWOT Analysis Template
This is the SWOT report that Heinz has done. Please let us know if you have additional suggestions to add.
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