Over the past 2½ years, thousands of workers lost their jobs, and iconic Kraft buildings, including the original Oscar Mayer headquarters in Madison, Wis., have been shuttered and sold. The cost-cutting project is now wrapping up, giving Kraft Heinz Co. KHC 0.60% the highest operating profit margin among its peers in the U.S. food industry.
That success, however, has unveiled a new, tougher challenge, one that is outside 3G’s traditional area of expertise. Kraft Heinz commands a smaller share of a shrinking overall market for processed meats, hit by consumers’ desire for fresher, more natural foods. And while 3G is expert at taking over iconic American brands and squeezing out costs, it is less known for building sales—especially for a product out of sync with consumer tastes.
Source: Kraft Heinz Made Its Factories Really Efficient. Now It Has to Sell Bologna – WSJ