Kraft Heinz Says Agile@Scale and Pod Strategy Yield Optimizations and Expedited Innovations
Kraft Heinz is driving increased innovation, getting new products to market faster and attributing advancements to its Agile@Scale strategy.
During the recent Consumer Analyst Group of New York (CAGNY) investors conference, CEO Carlos Abrams-Rivera shared several ongoing use cases in the company’s innovation approach, which has produced benefits such as optimized labor, automated financials, and reduced time to market.
"Our approach is creating a foundation for growth as we have significantly increased innovation as a percentage of our sales from 1.6% in 2022 to almost 3% in 2024," said Abrams-Rivera.
Also read: Kraft Heinz Among Consumer Goods Companies Harnessing Next-Gen RGM
The Initiatives
Kraft Heinz AI: As the company continues experimenting with AI, it has built its own internal AI engine to expedite enterprise-wide efforts.
“It is a catalyst for transforming ways of working. From idea to launch in 180 days, it is helping to elevate the scale of our organization from optimizing factory floor processes, streamlining SAP rollouts in China to automating routine financials, our Kraft Heinz AI is becoming an integral part of our total workflow,” said Abrams-Rivera.
Formulation optimizations: As the company looks to revisit existing products with a focus on health and wellness, it has engaged in several partnerships to reformulate and get on shelves faster.
The company worked with Curing Labs to create a machine-learning model that allowed it to reformulate the nutritional profile of products faster. In Brazil, the company reduced added sugars and sodium by over 30% for its ketchup while maintaining the same taste — a move it looks to implement across other products in its portfolio.
Time to market efficiency: Kraft Heinz partnered with Highbury Canco for a Taco Bell innovation that resulted in record launch speed with a 50% reduction in time to market. The company became a primary manufacturer of Taco Bell branded retail products in 2023 and lauched seven products last year. Additionally, in its Mexican food Agile pod, a cross-functional team launched seven new food products in under a year, which generated $32 million of sales in 2024.
Supply chain enhancements: It worked with Microsoft to create a control tower to drive real-time decision-making, transitioning the company from a reactive supply chain to a proactive one. Additionally, through a digital, collaborative platform that has been rolled out across the company’s North American plants, Kraft Heinz has reduced labor hours and improved yield. More than 1,200 plant employees have been onboarded to the new system.
