Kraft plans $2 billion in cost cuts

CHICAGO - Kraft Heinz Co. is returning to its tried-and-true cost-cutting strategy as the packaged-food giant looks to beef up its long-term financial position.

The company will target $2 billion in savings over the next five years by focusing on procurement, manufacturing and logistics, according to a presentation released ahead of its investor day Tuesday. As part of what it's calling a "strategic transformation plan," Kraft is now targeting growth of 1% to 2% for organic net sales, which excludes items like acquisitions and currency effects.

"We are committed to returning Kraft Heinz to consistent growth on both the top and bottom lines," Chief Financial Officer Paulo Basilio said in a statement.

The ketchup-maker also updated its third quarter outlook, with organic net sales growth expected in the mid-single digits due to stronger-than-expected business momentum. The pandemic reignited consumer interest in comfort staples like Oscar Mayer lunch meats and Kraft macaroni and cheese, giving it a boost during lockdowns, the company said.