Kraft Heinz is committing $3 billion to modernize its U.S. manufacturing facilities, marking the company’s most significant investment in its domestic operations in a decade. The initiative aims to improve efficiency across its 30 American plants, helping to reduce costs and accelerate product development during a period of economic uncertainty and rising operating expenses.
Pedro Navio, Kraft Heinz’s president of North America, said the investment decision was influenced in part by tariff pressures, including a newly implemented 10% levy on all imported goods. While the company’s exposure to Chinese imports is minimal, tariffs on products such as coffee have added to costs. The investment is also designed to strengthen the company’s long-term position in the marketplace and enhance its ability to introduce new products more quickly.
Kraft Heinz, known for iconic brands like Heinz ketchup, Kraft macaroni and cheese, and Philadelphia cream cheese, has been facing a challenging consumer environment. Executives report consumer sentiment is at its second-lowest level in 70 years, and the company recently lowered its sales and profit forecasts. Nevertheless, Kraft Heinz is pressing forward with the investment to protect its market share and build resilience for the future.
Navio emphasized that nearly all of the company’s U.S. product lineup is manufactured domestically. He noted that Kraft Heinz grows its tomatoes in California and sources potatoes from Idaho, underscoring its reliance on U.S.-based supply chains. Some of the goods produced domestically are exported to Canada.
In addition to enhancing production capabilities, the company expects the modernization effort will generate approximately 3,500 construction jobs across the various plant locations. However, there are no immediate plans to increase the permanent workforce once the upgrades are complete.
The announcement follows similar moves from other major manufacturers, including facial tissue producer Kimberly-Clark and brewing giant Anheuser-Busch InBev, who have also revealed investments in their U.S. operations in recent weeks.
