Kraft Heinz is investing $3 billion to upgrade its 30 factories across the U.S., the company’s biggest manufacturing investment in ten years. The food giant said the goal is to make its plants more efficient, lower costs, and bring new products to market faster.
Pedro Navio, President of North America at Kraft Heinz, told Reuters the decision was partly influenced by the 10% tariffs imposed by former President Donald Trump in April. “It goes beyond just efficiencies or dealing with the current tariff challenges,” Navio said. “The investment allows Kraft Heinz to produce food for the long term.”
The company says almost all of its products in the U.S.—including Heinz ketchup, Kraft macaroni and cheese, and Philadelphia cream cheese—are made in the U.S. with ingredients like tomatoes from California and potatoes from Idaho. Kraft Heinz also exports some of its U.S.-made products to Canada.
While tariffs on goods like coffee are increasing costs, the company said higher tariffs on Chinese imports have had little impact.
Kraft Heinz said the $3 billion investment will create about 3,500 construction jobs at its plants. Navio said the company doesn’t expect to add new factory workers beyond that.
In July 2023, Kraft Heinz announced a $400 million plan to build a large automated distribution center in DeKalb, Illinois. That project is part of the $3 billion total.
The company is moving forward despite what executives say is the second-lowest consumer confidence level in 70 years. Kraft Heinz has also cut its sales and profit forecasts, citing higher costs and weaker demand.
Helen Davis, SVP and Head of North America Operations, shared the news on LinkedIn: “This investment sets the bar for operations excellence in the CPG sector, accelerating our ambition to build the supply chain of the future and I couldn’t be prouder.”
Kraft Heinz also received a $170 million investment last year from the U.S. Department of Energy to support clean energy projects at 10 U.S. plants. That effort is expected to create about 500 more jobs, including upgrades like electric heaters, heat pumps, and energy storage systems.
