Robert Besser
17 May 2025, 16:40 GMT+10
CHICAGO, Illinois: Kraft Heinz is committing US$3 billion to revamp its U.S. manufacturing plants, marking its largest investment in domestic facilities in a decade, even as consumer sentiment hits a historic low and the company scales back its sales and profit forecasts.
The investment is aimed at making its 30 plants across the United States more efficient, potentially offsetting the impact of tariffs imposed by President Donald Trump, said Pedro Navio, president of Kraft Heinz North America.
Navio said the upgrades would not only reduce costs but also speed up the development and launch of new products, helping the company maintain its market share amid rising costs and slowing consumer spending.
"It goes beyond just efficiencies or dealing with the current tariff challenges," Navio said in an interview. "This investment is about producing food for the long term."
Kraft Heinz, co-headquartered in Pittsburgh Pennsylvania, and Chicago, Illinois, known for products such as Heinz ketchup, Kraft macaroni and cheese, and Philadelphia cream cheese, has faced higher costs due to tariffs on imports, including coffee. While imports from China are minimal, the U.S. tariff policy has increased costs on other goods, the company said.
Despite the economic pressures, Kraft Heinz is moving ahead with the investment to fortify its U.S. operations. The initiative is expected to create approximately 3,500 construction jobs, though Navio said the company does not anticipate adding permanent employees beyond that.
The company said it sources most of its raw materials domestically, including tomatoes grown in California and potatoes from Idaho. Some products manufactured in the U.S. are exported to Canada, Navio added.
Kraft Heinz joins other major manufacturers, such as Kimberly-Clark and Anheuser-Busch InBev, which have also announced significant investments in U.S. production facilities in recent weeks.
While the company does not always publicly disclose a full list of locations, some known U.S. states with Kraft Heinz facilities include:
Illinois – (Chicago area, including the former Kraft headquarters in Glenview)
Iowa – (Davenport, Cedar Rapids)
California – (Fresno, Stockton)
Pennsylvania – (Allentown, Lehigh Valley)
Virginia – (New Century plant in Suffolk)
Ohio – (Fremont, Massillon)
Michigan – (Holland)
Wisconsin – (New Ulm)
Missouri – (Columbia)
Texas – (Garland, San Antonio)
North Carolina – (New Century facility in Fremont)
Oregon – (Portland area)
Get a daily dose of Austin Globe news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Austin Globe.
More InformationCHICAGO, Illinois: Kraft Heinz is committing US$3 billion to revamp its U.S. manufacturing plants, marking its largest investment in...
STOCKHOLM, Sweden: Sweden plans to propose that the European Union join the Pacific Rim trading bloc, the CPTPP, aiming to create the...
NEW YORK, New York - U.S. stocks closed higher Friday with all the major indices capping weekly gains in the process. Markets are...
WASHINGTON, D.C.: The U.S. Department of Energy has announced plans to eliminate or amend more than 40 regulations as part of President...
WASHINGTON, D.C.: In April, U.S. consumer prices went up slightly. Rent costs increased, but food prices went down, which helped keep...
NEW YORK - International travel spending in the United States is projected to decline by 7 percent in 2025, amounting to a US$12.5...
MOUNTAIN VIEW, California: Google will pay US$1.4 billion to settle allegations that it unlawfully collected user data in Texas without...
WASHINGTON, D.C.: The number of measles cases in the U.S. has gone over 1,000 for the first time in five years, according to federal...
HOUSTON, Texas: Citgo Petroleum, the Houston-based refiner owned by Venezuela, posted a net loss of US$82 million for the first quarter,...
WASHINGTON, D.C.: The Republican-led U.S. House of Representatives has passed a bill to rename the Gulf of Mexico as the Gulf of America,...
(250517) -- CANNES, May 17, 2025 (Xinhua) -- Jury President of Un Certain Regard, British director, screenwriter and cinematographer...
Cannes [France], May 17 (ANI): The Cannes Film Festival witnessed a powerful and emotional moment as Joaquin Phoenix and Ari Aster's...