Kraft Heinz Corporation (Nasdaq: KHCDetailed Tuesday a The new strategic transformation plan It aims to reduce costs by about two billion dollars until 2024.

Operating Model: The staple of Kraft Heinz’s transformation is a new five-element operating model, including:

• Reaffirming employees as the most important resource;
• Downsizing the portfolio from 55 individual categories to six consumer-driven platforms;
• Create a new supply chain that is faster, adaptable and provides greater visibility;
• Developing new strategic partnerships; And
• Reinvesting efficiency gains to improve growth.

Long-term financial goals: Kraft has set a series of long-term financial goals as part of her transformation. These include organic net sales growth of 1% to 2%, adjusted EBITDA growth from 2% to 3% and adjusted EPS growth of 4% to 6% with free cash flow shifting greater than or equal to 100%.

Change the “mindset” Previous fatal mistakes resulted in Kraft losing market share in key categories of low-priced store brands. The company recorded $ 2.9 billion in impairment fees in July after reducing the value of its assets by more than $ 16 billion last year.

Kraft’s new goals stem from management’s perception that past decisions were inherently “very short term”, Kraft CEO Miguel Patricio He told the Wall Street Journal. The company is now working to “change that mindset”.

Kraft’s stock is trading at approximately $ 32.12 per share at time of publication.

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