Kraft Heinz is restructuring its operations into three regional units while cutting senior leadership roles to reverse declining sales.
The food giant will consolidate its global businesses into North America, Europe and Pacific Developed Markets, and Emerging Markets, effective July 1. Nico Amaya will continue leading the North America division, which includes the U.S. and Canada. The North America unit remains a critical revenue driver, housing many of the company’s most iconic brands and its largest consumer base. The Europe and Pacific Developed Markets region groups together mature economies with established distribution networks, while Emerging Markets focuses on higher-growth opportunities where brand penetration and consumer spending patterns differ significantly.
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Procurement and supply chain functions will merge into a single unit under Janelle Aydin, the newly appointed global chief procurement and supply chain officer. By unifying these operations, Kraft Heinz aims to eliminate redundancies, improve cost efficiencies, and enhance coordination across regions. The changes will see Cory Onell and Flavio Torres leave their roles as chief omnichannel sales and Asia emerging markets officer and global chief supply chain officer, respectively. Onell’s departure marks the end of his oversight of omnichannel strategies, which had focused on integrating digital and physical sales channels, while Torres had led global supply chain initiatives prior to the consolidation. Both will stay on as advisors during a transition period to ensure continuity in ongoing projects and relationships.
CEO Steve Cahillane said the new structure aims to “unlock the full potential” of the company’s portfolio and drive “sustainable, volume-led growth.” Cahillane, who took over in January, has moved quickly to reshape the business, scrapping a planned split of its condiment and grocery divisions and redirecting $600 million toward marketing, R&D, and potential price reductions. The decision to abandon the split reflected a belief that internal operational improvements could address performance issues more effectively than a structural separation. The reallocation of funds signals a renewed emphasis on innovation, with a portion of the investment earmarked for product reformulation and packaging updates to better align with evolving consumer expectations.
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First-quarter results show early progress. Net income rose to $799 million, up from $714 million a year ago, while net sales inched up 0.8% to $6.05 billion. The profit increase was driven by tighter cost controls and improved margins in key product categories, while the modest sales growth suggests stabilization after a period of decline. The performance was particularly notable given the broader economic headwinds affecting the food sector.
The restructuring follows broader industry pressures, including shifting consumer preferences away from processed foods and inflation-driven spending cuts. Kraft Heinz, home to brands like Heinz ketchup, Kraft Mac & Cheese, and Philadelphia cream cheese, has struggled to maintain momentum in recent years. Many of its legacy products, once staples in household pantries, have faced competition from brands marketing themselves as healthier or more natural, forcing the company to reassess its portfolio strategy. Additionally, inflation has led consumers to trade down to private-label alternatives or reduce discretionary spending on packaged foods.
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Analysts note that while the new regional structure may streamline decision-making, the company’s ability to adapt its product lineup to changing tastes will be critical. The first test may come in how quickly these changes translate into consistent sales growth. The regional model is expected to allow local teams greater autonomy in tailoring marketing and product offerings to regional preferences, a shift from the previous centralized approach. However, the success of this strategy will depend on the speed and effectiveness of execution, particularly in markets where Kraft Heinz has historically underperformed relative to competitors.