The company has made efforts to rejuvenate well-known brands like Oscar Mayer and Maxwell House to attract younger consumers, but elevated prices have caused some customers to turn away.
Kraft Heinz, the food giant, announced on Monday that its North American president will assume the role of CEO next year.
Effective January 1st, Carlos Abrams-Rivera will take over from Miguel Patricio, who has been leading Kraft Heinz since 2019. Patricio assumed the role of chief executive during a period of challenges for Kraft Heinz, including declining sales, write-downs on some of its iconic brands, and increased scrutiny from investors regarding its business model.
Under Patricio’s leadership, the company has attempted to reinvigorate iconic brands like Oscar Mayer and Maxwell House to appeal to younger consumers, as well as expand its away-from-home business with innovative products like a customizable sauce dispenser for restaurants. However, demand for its products has declined in recent months due to higher prices deterring budget-conscious consumers and intensified competition from rivals who are investing more in promotions.
This year, Kraft Heinz shares have experienced a 15% decrease, leading to a drop in its market value to $42.2 billion. In contrast, the S&P 500 has seen a 16% increase during the same period.
The appointment marks a significant moment for Abrams-Rivera, as he started his career in the food industry at Kraft, where he managed brands like California Pizza Kitchen and Philadelphia Cream Cheese, as indicated on his LinkedIn profile. He later led Mondelez’s Latin American gum and candy division and Campbell Soup’s snack business. Abrams-Rivera returned to Kraft Heinz in February 2020 as the head of its U.S. zone, just before the Covid-19 pandemic boosted demand for many of the company’s products.
Miguel Patricio will remain chair of the board after stepping down in the new year, while Carlos Abrams-Rivera will take on additional responsibilities as president of Kraft Heinz before assuming the CEO role in the upcoming transition.
