Sept. 15 (UPI) -- U.S. food giant Kraft Heinz said Tuesday it will cut costs by $2 billion and seek to increase sales under a five-year turnaround plan.
Kraft Heinz, maker of the Heinz ketchup and mustard brands and Oscar Meyer, said it plans to accomplish the goals with a new operating model focused on procurement, manufacturing and logistics.
"I am extremely confident that unlocking the power of scale with agility, combined with our new operating model, will return Kraft Heinz to consistent and sustainable growth," CEO Miguel Patricio said in a statement.
The strategy involves making "growth investments" including a 30% increase in marketing spending. Patricio said the moves will create "a clear path to rebuilding" Kraft Heinz into an industry leader.
Organic net sales are targeted for growth of between 1% and 2% under the plan.
Costs were also cut by $2 billion following the merger of H.J. Heinz and Kraft Foods in 2015, but the combined company struggled to grow sales of its long-running food brands in an era of changing tastes. The downturn resulted in billions in losses for many of its brands, like Maxwell House.
A leadership shake-up last year saw Patricio succeed Bernardo Hees as CEO after he'd been chief marketing officer for Anheuser-Busch InBev.
Kraft Heinz has seen an increase in sales as a result of the COVID-19 pandemic among "comfort staples" like macaroni and cheese. The company said it expects an increase in third-quarter sales.