The Kraft Heinz Company (NASDAQ:KHC) Consumer Analyst Group of New York (CAGNY) Conference Transcript February 21, 2024 11:00 AM ET
Executives
Carlos Abrams-Rivera – Chief Executive Officer
Andre Maciel – Chief Financial Officer
Analysts
Andrew Lazar – Conference Chair, CAGNY, Barclays
Andrew Lazar
If we could find our seats, we’ll kick off our next presentation. Kraft Heinz will be our next company to present. And first off, please join me in thanking Kraft Heinz for the delicious lunch today and the tater tot condiment bar that’ll be out there all afternoon. Make your own condiment, it’s fun, trust me.
So Kraft Heinz company came together in 2015 from a merger led by Berkshire Hathaway and 3G. Today, Berkshire Hathaway remains the primary company shareholder, while 3G has fully exited the company, including all stock.
While the company has a 155-year heritage in the U.S., it also has a new CEO, who started just eight weeks ago in the current role. To talk about the future of Kraft Heinz, please welcome CEO, Carlos Abrams-Rivera; followed by CFO, Andre Maciel.
Carlos, over to you.
Carlos Abrams-Rivera
Well, thank you, Andrew, and what better place to be after eight weeks than here with you. So, listen, Andre and I are thrilled to be here today with you. And before we begin, please keep in mind that today’s presentations will include some forward-looking statements.
Listen, at Kraft Heinz, more than so than ever, we’re looking ahead from our positions of strength and we’re excited that we have turned the corner in our transformation journey. We are now positioning Kraft Heinz to generate consistent top-tier returns.
To do this, we have extended our line of sight, looking to the next 10 years, to where consumer demand is going to go. With a sharp focus on our iconic brand and technology-led investments, we are clearing a path to delivering consistent returns. I will do it by being the leader in elevating and creating food that makes you feel good.
As you may recall, in 2020, we reset our company foundation. Pivoting from a strategy of growth through M&A and cost-cutting, to one focusing on organic growth. Since then, we have successfully and fully deployed our new operating model, unlocking efficiencies to reinvest in the business and drive the topline, and in 2023, we accelerated profitable growth.
Since announcing our plan to turn around the business, we have made dramatic improvements, financially, operationally and culturally. We set our direction and started on this journey late 2019, and as you can see, how far we can come — we have come.
When you look at our key performance metrics, we accelerated profitable growth, re-established investment levels and strengthened our balance sheet. We have also unlocked end-to-end efficiencies, empowered the organization with Agile@Scale methodology.
One of our company’s values is we champion great people. So we brought in experienced leaders with new perspective, improved employee engagement and retention, and maintain a culture of ownership and meritocracy.
Our strategy is working. With our financial, operational and cultural improvements, combined with our dividend yield and recently announced $3 billion share buyback program, driving overall shareholder value. Now, our goal is to do this consistently, by being the leader in elevating and creating food that makes you feel good.
So what do we mean by this? For us, being the leader means that we consistently deliver top-tier stockholders returns, through a combination of business fundamentals, as well as through capital allocations.
We believe Kraft Heinz is uniquely positioned to be the leader in elevating and creating food solutions. Elevating food by providing a great selection of flavors, led by the iconic Heinz brand and creating food by providing tasty and convenient Easy Ready Meals and Snacking solutions.
Serving food that makes you feel good. Good for your soul. Most consumers are looking for comfort in their food. Think of the visceral feel-good comfort you get from a warm bowl of Kraft Mac & Cheese. I’m thinking about that right now. Good for your health. Expanded plant-based offerings, reduce sugar and sodium, and added functionality that empowers consumers by giving them a range of nutrition choices.
Good for the planet. We are making advancements in manufacturing, sustainable packaging and responsible sourcing across our business and around the world.
Good quality. Safe and delicious products that consumers trust and feel good about eating and serve it to those you love.
And food that provides a good value to consumers across the globe. To achieve this goal, it is imperative that we are playing in the right consumer spaces. So we re-evaluated the relative market attractiveness and our right to win across our portfolio and we have done it by taking a long-term perspective over the next 10 years.
The categories where we see Kraft Heinz playing a leading role are Taste Elevation, Easy Ready Meals and Substantial Snacking, all seen here in dark blue. We are prioritizing these spaces and we call them our Accelerate Platforms.
We expect these Accelerate Platforms to drive outside topline growth and generate higher growth margins. This includes categories in which we have higher market share with only limited exposure to private label and in these platforms we look to accelerate growth and plan to prioritize our investments. We will dive deeper into each of these three platforms.
The second group is our Protect Platforms. They have made growth potential, they have moderate growth potential and tend to generate high growth margin. In these categories, we have high share with low exposure to private label. Our strategy to win here is to protect profit margins and invest at a healthy level. These platforms are desserts and hydration.
The final group is composed of our Balanced Platforms. They provide us with scale and generate cash to invest in our other platforms. They include meats, cheese and coffee. In these categories, we have high share and a strong brand equity, although we are exposed to commodity-driven volatility.
These categories are expected to remain relatively flat over the next 10 years. Here, our strategy is to balance performance and profitability, rebuild the foundations and to invest to maintain a strong brand equity. These refined roles, Accelerate, Protect and Balance, replace the previous roles of Grow, Stabilize and Energize. These new groupings more precisely direct our focus to those consumer spaces that will provide the best growth and return.
Let me share four main differences between the previous platform roles and the new ones. First, we split the cheese portfolio in two, with our Philadelphia cream cheese moving into Taste Elevation and our Kraft Singles and Velveeta into a standalone cheese business.
Second, we expanded our Taste Elevation platform to include spreads, more sauces and spices. In addition to Philadelphia cream cheese, as I just mentioned, we also added our pasta sauces, which were previously in Easy Meals. This change represents a strategic shift to look more holistically at all the opportunities to enhance flavors across a variety of host foods.
Third, we grouped snacking categories together acknowledging the opportunity and our right to win there, particularly in the refrigerated and frozen spaces. This includes Lunchables, Delimex, Claussen, P3, and others.
And fourth, we grouped commodity-like categories together based on their similar characteristics.
When it comes to investments, we are prioritizing our Accelerate Platforms, and because they have the highest growth potential, we expect them to become a larger part of our total net sales, reaching more than 75% over time.
Now, let’s take a closer look at each consumer platform within the Accelerate role, Taste Elevation, Easy Ready Meals and Substantial Snacking. As I mentioned earlier, Taste Elevation is one of our most attractive spaces and where we have the highest right to win. The industry is expected to grow at a 4% annual compounded rate over the next 10 years. With more than 40% of our global portfolio in Taste Elevation, we are a clear leader. Our iconic Heinz and Philadelphia brands are driving the way. We play in more than 70 countries and are number one player in sauces worldwide.
Here’s how we accelerate growth. First, we are evolving our core offerings to meet changing consumer needs. We turn up the heat by launching spicy ketchup for heat fans in the U.S., I’m one. Another flavor by combining tangy and savory flavors of pickles with the unmistakable taste of Heinz ketchup. We’re showing up the simple, clean ingredients of Heinz tomato ketchup in Brazil right on the label. And at the same time, we’re also saving more than 1 billion plastic lids from being sent to the landfill each year with the first 100% recyclable cap.
Second, we’re intentionally expanding in non-core host foods. Those that can serve to showcase our sauces, spreads and spices. We already deliver the taste that consumers want on their burgers, hot dogs and salads, but why stop there? Many rapidly growing host foods can be elevated by our brands, such as Heinz hot sauces that add flavor to a Burrito or Taco, or Philadelphia cream cheese that goes beyond the Bagel.
Third, we are growing Heinz also beyond the ketchup. Only 36% of our Heinz sales in North America are non-ketchup versus nearly 70% in our developed international markets. This represents a huge opportunity, so it has to be Heinz no matter the occasion. For example, on the table, we have Heinz seriously good mayonnaise and gravy. In the kitchen, we have launched a line of cooking and pasta sauces, all with the tomato at the center.
Now, let’s look at how pasta is served at Nona’s house. Let’s roll the video.
[Video Presentation]
Just like mom used to do it. Our second Accelerate Platform, Easy Ready Meals, features convenient, satisfying meals you can prepare in 30 minutes or less. Including brands such as our iconic Kraft Mac & Cheese in the U.S., HEINZ Beanz in the U.K. or Crave Frozen Meals in Canada. Our Easy Ready Meals provide both convenience and quality.
We expect the industry for this consumer space to grow an annual compounded rate of 4%. Easy Ready Meals now represent 17% of our portfolio and we are primed to lead through this fragmented space.
Here’s how we accelerate growth. First, same as the Taste Elevation, we are evolving the core. We found consumers were customizing their HEINZ Beanz to make them a bit more special, so we made it easier by launching the bold new Heinz Curry Beanz. This generated 60% incrementality, bringing new consumers to the beans category or switching for private label.
At the same time, on the sustainability front, we pioneered HEINZ Beanz snap-pots. These food-grade microwavable pots are made with recycled soft plastics, which consumers can return to collection points at Tesco stores in the U.K. I am proud to say this innovation won gold in the Environmental Packaging Awards.
In responding to consumers’ increasingly busy lives, we took America’s favorite comfort food, Kraft Mac & Cheese and launched Deluxe Frozen. With minimal preparation, consumers can have perfectly cooked macaroni pasta covered in creamy home style cheese sauce and topped with real cheddar cheese.
Second, we are continuing to expand partnerships. We have taken Taco Bell Home with the first launch of the Crunchwrap Supreme and Chipotle Chicken Quesadilla. Using Taco Bell restaurant ingredients, seasoning and sauces. The Kraft Heinz Nut Company launched the first-ever plant-based Kraft Mac & Cheese, using NotCo revolutionary AI technology to deliver delicious taste and textures.
Third, we are accelerating against global trends. Mexican is the number one international cuisine in the United States and growing internationally. We are expanding Delimex in 2024 with the launch of protein-packed burrito bowls with authentic Mexican street-style flavors and convenient preparation.
In the UK, we recently launched Las Chicas, a line of five-meal kits that contain all the essentials to make Mexican food as flavorful and authentic as possible in as little as 20 minutes.
Our work with Chef Daniela Soto-Innes, the youngest person to be named World’s Best Female Chef by the 50 Best Restaurants, is all about bringing true authenticity and chef-like creation to our Mexican food pipeline. Together, we’re working with Chef Daniela, who herself is a native of Mexico City, on recipes, strategies and design so we can deliver the new and evolving taste consumers want.
Our Substantial Snacking platform is just that. Snacks you can enjoy between or instead of meals. Concentrated primarily in North America and mainly in the refrigerated and frozen isles. We anticipate the Substantial Snacking industry to grow at a 4% compounded annual growth rate, with the frozen snack industry growing even faster.
Here’s how we accelerate growth. First, same as in the other platforms, we are evolving the core. For the first time ever, Lunchables entered the produce aisle with its new fresh fruit offerings. Dunkables, a new lineup of snack combinations designed for kids to grab dip and top with their favorite ingredients, delivers on kid desires and convenience without compromise.
Second, we’re expanding wholesome snacking by offering savory, fueling experience to consumers. Think craveable claws and pickles or beans hummus with a nutritional power of HEINZ Beanz turning to dips in flavors like rusted butters, nut quads and chipotle chili.
Third, we’re providing convenience through our ownable technology. Last year, we launched Lunchables Grilled Cheesies using our 360CRISP technology platform that creates crispy, crunchy products like you get on the stove. In fact, I’m excited to taste a delicious new launch in 2024. Our Delimex Chipotle Chicken Quesadilla with 360CRISP technology that combines authentic flavors with the perfect crisp bite.
Our Accelerated Platforms are at the core of our growth across North America retail, global away-from-home and emerging markets. And what we do play in our Protect and Balance platform across North America retail and away-from-home, the Accelerated Platforms of Taste Elevation s, Easy Ready Meals and Substantial Snacking are the ones we expect will drive the strongest growth. To deliver on this growth, we have a clear path ahead, a Kraft Heinz playbook, if you will.
So let’s start with our growth pillars. North American retail driven by Accelerated Platforms away-from-home and emerging markets. This year, we are deploying a new brand growth system and plan to continue investing in disruptive marketing, innovation and sales excellence, and we’ll fund this initiative by unlocking efficiencies across revenue management and our supply chain by reducing working capital needs and through centralized services.
What gives me confidence is our ability to execute in that we have three competitive advantages that uniquely positions in the marketplace. Our new ways of working through Agile@Scale, our approach to a strategic partnership and the powerful ownership-centric culture embraced by our people.
Today, Andre and I will highlight some key elements of this plan, starting with our three pillars of growth. As you may recall, we’re expecting each pillar to drive about a third of our total topline growth. With approximately 1 percentage point of organic net sale growth coming from each of these pillars, we are targeting topline growth in a long-term algorithm of 2% to 3%.
As I mentioned, North American retail growth will come from our Accelerated Platforms, driven primarily by innovation, as well as elevated brand superiority built through our new brand growth system and I’ll talk about that in a minute.
We already have incredibly solid positioning here. Within the U.S., we have household penetration of 94%, with 77% of our products holding the number one or number two position in their categories and 59% of our portfolio categories gained share in the most recent quarter.
In our away-from-home business, we have significantly opportunity to capture share. In North America, we see expansion opportunities across the portfolio, from ketchup to mayo to soups, and across international, our penetration, especially in emerging markets, is significantly below our share in North America. That means there is much room for us to grow.
We are seeing a lot of success in our away-from-home business. It grew 14% in 2023 and gained share both in North America and international. First, our growth is driven by global brand activations, including high selection programs and hospitality experiences, second, by entering new higher margin channels, and finally, through both products and equipment innovation.
Turning to emerging markets, we see tremendous opportunity for Kraft Heinz. We expect the Taste Elevation industry alone to grow at a 6% CAGR, with only half the penetration in the emerging market as we have in the developed market, there is a ton of white space. Emerging markets only make up 10% of our business today, so we see meaningful room to grow our percentage of total sales.
We have three clear levers backing our growth in emerging markets; first, our go-to-market model; second, the incredible brand equity of Heinz; and third, our away-from-home business. In 2023, we generated 14% topline growth, while expanding EBITDA margins 150 basis points.
Now, let me move to our enablers of growth, where we will continue to invest in our future. We have made tremendous progress over the past year, strengthening each discipline. One of the most exciting steps we have taken is establishing a new brand growth system, which works hand-in-hand with our disruptive marketing and innovation to drive brand superiority.
This year, we are establishing a systematic methodology and discipline across the organization to measure, monitor and build our brands. We call this The Kraft Heinz Brand Growth System. We’ve had great success in marketing advancements recently, but now it’s time to institutionalize our philosophy of building superior brands on a global basis.
As part of this new process, we’ll track the most critical leading KPIs that can provide incremental value to Kraft Heinz. This includes metrics across brand’s resonance, product and package delivery, value equation and omnichannel execution. We are determining how our brands are delivering against consumer needs and desires.
We are prioritizing our biggest opportunities to raise the bar on our brand strategy, enhancing the value we offer to customers and consumers, while also optimizing our return in the marketing investments.
As an example, let’s look at brand resonance and the work we have already done with our beloved Heinz brand. In 2023, we launched a global Multi-Touch Campaign to reinforce and build brand love, all while building brand equity at the speed of culture.
As a result, Heinz reached iconic brand status. We saw a clear increase in brand love with growth in brand affinity, favorability and obsession metrics. And we saw it reflected in our 2023 sales, generating a 12% increase across the global Heinz brands.
Think about what we can do when we go just even beyond Heinz. In fact, if we can close our gap to just the media ROI benchmarks across our top 10 brands, this alone could bring over $150 million of incremental net sales.
As you can see, it’s a new day of marketing for our Kraft Heinz. Our mission to lead the future of food and meaningfully connect with consumers is gaining momentum. For us, disrupting through marketing isn’t just a strategy, it is a special sauce and this movement all started with Heinz. So let’s take a look.
[Video Presentation]
Just getting started. We’re making great progress and I’m excited to be on this journey to build superior brands. Now let’s move on to innovation. We are on track to generate $2 billion incremental net sales from innovation. With more than $260 million incremental net sales in 2023, we saw over 70% increase compared to 2022 and we’re just getting started.
We see significant opportunity across Taste Elevation, Easy Ready Meals and Substantial Snacking. We have stepped up our investments in R&D and we’ll continue to do so this year. Developing disruptive platforms with exclusive intellectual property like 360CRISP and we’re moving swiftly by leveraging tech enabled Agile@Scale. At the same time, we’re going big and scaling smart by testing and learning in market first and then focusing on the highest incremental opportunities.
Let’s take a look at what our teams have been doing. So let’s watch the video.
[Video Presentation]
Now let’s look at our last enabler of growth, sales excellence. Through investment we have made in digital solutions like our revenue management and planning tools, we have leveraged new insights and capabilities. These have resulted in improved ROI on promotions and expanded our share of shelf.
Internationally, our go-to-market model now covers 90% of our emerging market business and we have trends in customer relationship in a big way through elevator joint business planning. The proof, we significantly improve our standing in 2023 Advantage Survey Rankings moving up eight spots.
And now we have the organizational structure in place to replicate these successes across Kraft Heinz. With our newly created global omnichannel office, we’ll be better able to scale best practices, share wins across the world and move globally with even more speed and agility.
With that, let’s move to our sources of funding and capital location. And I’ll hand over to Andre to take you through the details. Andre?
Andre Maciel
Thank you, Carlos. Hello, everyone. Good morning. Great to be with you today. So when it comes to sources of funding, we’d like for you to take away two things. First, we have proven we can unlock efficiencies and fund our enablers of growth without sacrificing our overall profitability. And second, we have a lot more opportunities ahead of us.
Let’s take a look at some examples. Within revenue management, we have created a dedicated organization and have built digital tools that have resulted in a 5% CAGR improvement in promotional ROI since 2019. And there is more opportunities to explore, including further reducing negative ROI promotions, scaling AI-based models for promotional calendars that are being prototyped right now and increasing contribution from mix.
We are also stepping up improvements across our entire supply chain and we are on track to hit our target of $2.5 billion growth efficiencies by 2027. We are on a pace to generate efficiencies at about 3.5% of COGS and we will continue to strive to close the gap to the 4% best-in-class benchmark.
To reach these levels, we will be extending digital tools to build a self-driving supply chain and we’ll continue to increase capabilities through automation and network optimization. At the same time, we’ll be maintaining discipline execution and leaning into our company value we dare to do better every day with a mindset of continuous improvement.
Working capital also provides us opportunity for us. Through machine learning and automation, we have improved forecast accuracy and reduced excess inventory, all moving towards best-in-class benchmarks.
Here as well, we have a lot more potential when it comes to further improvement. We have plans to consolidate and automate warehouses, increase use of touchless demand forecasting and scale up our newly launched automated production scattering.
Finally, we are capturing efficiencies by expanding centralized shared services capabilities. We have already unlocked $30 million in annual efficiencies in 2023, driven in part by establishing a new captive center in India and we have identified an additional $50 million in potential annual value and by connecting our finance backbone globally and increasing the level of automation, there is much more value we can unlock.
Our three pillars, enablers of growth and sources of funding, combined with our capital allocation strategy, position us to deliver on our 2024 outlook, which incorporates our expectation of ending the year on pace with our long-term algorithm.
This long-term algorithm contemplates 2% to 3% organic net sales growth, 4% to 6% adjusted operating income growth, 6% to 8% adjusted EPS growth and approximately 100% free cash flow conversion. This, combined with the attractive dividend supports our target to deliver consistent double-digit TSR. To make sure we are on track, we have targeted specific key performance indicators. They are centered around unlocking efficiencies to drive brand superiority and to drive the topline.
To align the entire Kraft Heinz team with this goal, in 2024, we created common incentives for both short- and long-term performance. These incentives reinforce the importance of a balanced contribution between topline and bottomline growth.
We have taken a disciplined approach to financial management and that has led to a healthier balance sheet, creating optionality for capital allocation. Our priorities are to continue to invest in organic growth, actively manage our portfolio and return incremental capital to our stockholders.
When it comes to portfolio management, our priority is to do M&A that strengthens and accelerates our organic strategy. We have defined strategic and financial parameters for both acquisitions and divestitures.
In the case of potential acquisitions, our priority spaces are in our Accelerated Platforms, in expanding our exposure to emerging markets and in enhancing our critical capabilities. We have a bias towards bolt-on acquisitions. In the case of divestitures, our strong balance sheet position us to take a disciplined approach to fair valuation.
With that, I will turn it back to Carlos.
Carlos Abrams-Rivera
Thank you. So, to wrap up our playbook, let’s now turn to our competitive advantages. These are our superpowers, difficult to replicate and they give us an edge over our peers. First, Agile@Scale gave us the fuel to outpace our competition faster and at scale, by focusing on our most critical challenges. This methodology is helping us transform the organization, empowered by technology. We have successfully deployed Agile Pods across North America, and are now expanding globally. Our results today have been nothing short of impressive, as Agile@Scale meaningfully contributes to our annual growth efficiency each year.
Second, we are developing best-in-class partnerships to co-create the future of food. We have already seen great results. One example is the Heinz Remix machine, where we collaborated with Microsoft to analyze data from the dispenser machines. We have also increased capacity and accelerated sales in our Ore-Ida business, thanks to our Simplot partnership. And we’ve recently expanded our partnership and became the primary manufacturer of Taco Bell’s branded retail products. We’re able to bring Taco Bell’s signature and credible offerings and flavors straight to the grocery aisle.
Now, for me, our third competitive advantage is foundational. Our ownership-centric culture can be seen in the way we operate our business. We embrace the rep by understanding gaps in performance and acting on them. We are ambitious and accountable, meaning we stress ourselves to achieve more and hold ourselves responsible. We recognize and reward exceptional performance at every level. We reduce complexity in our organizational structure with fewer layers so that leaders are close to the business. This allows us to operate efficiently.
Ultimately, we think and act like owners of our business, taking results personally and treating every dollar as if it’s our own. Here at Kraft Heinz, we own it. And with that ownership in mind, we update our organizational structure to support our strategy. We created global offices and realigned our zones, allowing us to focus attention on critical areas and provide access to the right expertise and resources.
Our global growth office will strengthen our marketing capabilities, deploy our superiority model, coordinate R&D investments and formulate disruptive innovation. Our global omnichannel office will deploy and evolve our go-to-market strategy, run our perfect stores initiatives and manage our away-from-home playbook.
Investing in this discipline allows us to leverage centralized expertise and resources around the world. It will help drive growth and disruptive innovation across the businesses while optimizing what we’re able to offer our customers and consumers.
We have divided our previous international selling into three zones, Europe and Pacific developed markets, West and East emerging markets and Asia. These markets require localized sets of strategies and skills, but with the support and scale of our global offices.
With the new structure in place, we have assembled a group of diverse, proven, experienced leaders to guide our strategy. I am thrilled to welcome Pedro, Willem, Bruno, Cory and Diana into their new roles. And what makes me incredibly proud is that all five were internal promotions.
This reflects the quality of our talent and focus on people development and showcases our company values. We champion great people. I am confident these leaders will power our growth and we set our course to lead the future of food.
Our people are the final and most important part of our culture. With the right structure of leaders in place, our diverse and engaged people grow along with the company as we execute against our goals.
Another one of our company values is we demand diversity. It’s not a slogan, it’s who we are. And we are on an ever-ending journey to better reflect the consumers we serve and communities where we operate around the world. Our people are more engaged than ever.
And in 2023, we had our highest employee engagement score yet. Not only are we improving relative to ourselves, but we are also above the external benchmark for overall engagement. We’re also committed to making sure our people can soar as high and as far as their ambition takes them. We are proud to be in the top quartile on key cultural attributes, including career, growth, inclusion and empowerment.
We set out on a journey of transformation about four years ago and since then, we have taken game-changing steps in turning Kraft Heinz around. There is so much more opportunity ahead. As we focus on the most attractive consumer spaces, categories, market and channels, we are making the right investments across our brands, marketing, innovation and sales to capture these opportunities. And most importantly, we have ownership-centric culture and the right structure, leaders and people in place.
Now, like any great recipe, we got the ingredients in place for us to complete our success. With our goal to be the leader in elevating and creating food that makes you feel good now as our new North Star, we believe we have what it takes to generate consistent, top-tier TSR and we couldn’t be more excited about what’s ahead for us at Kraft Heinz.
We do hope you’ll join Andre and me and several members of our Kraft Heinz executive team for lunch. You’ll get a chance to taste some of our delicious new innovation, ask a question, put on your R&D hats, as we together will create the CAGNY 2024 Sauce of the Year!
Thank you for your attention and time today and for the interest in Kraft Heinz. But before we break, let’s hear from the legendary James Beard Award-Winning Chef, Marcus Samuelsson, who we partnered with to curate today’s lunch. Play Chef Marcus’ video, please.
[Video Presentation]
Andrew Lazar
Great. Thanks so much, Carlos and Andre. I think what we’re going to do now is, we’re going to head straight out to lunch, where management that Carlos talked about will all be out there at the various tables. And please join me again in thanking Kraft Heinz for lunch today.
Question-and-Answer Session
Q –
