THE MONTH OF AUGUST, ONE HOUR
FROM NOW, ONE COMPANY IS PLAYING
A LARGE ROLE IN BOOSTING ITS
NOONED BEVERAGE COMPANY IN THE
WORLD.
THE NAMES MERGED IN 2015 AND
HAVE ACQUIRED BRANDS LIKE JELLO,
KOOL-AID, UNDER THE BANNER KRAFT
HINES.
JOINING US NOW IS THE CEO OF
KRAFT HINES, BERNARDO HEES.
THANK YOU FOR SEEING US.
>> THANKS FOR HAVING ME HERE.
MARIA: THE COMPANY COULD BE
GETTING BIG WEAR THE CAMPBELL --
BIGGER WITH THE CAMPBELL'S SOUP
COMPANY.
WHERE DO YOU SEE GROWTH RIGHT
NOW.
>> WE'RE INVESTING IN THE GROWTH
AGENDA THAT INVOLVES A COUPLE
THINGS.
ONE, A LOT OF INNOVATION WITH
INCREMENTAL PRODUCTS LIKE
THE SALES FORCE.
WE JUST ADDED IN THE LAST
SEMESTER ABOUT 300 PEOPLE THAT
ARE SALES REPS, TOUCHING STORES
AND MAKING SURE OUR ENTIRE
DISPLAYS AND MERCHANDISING,
POINT OF DISTRIBUTIONS ARE IN
PLACE AND WE HAVE A BIG AGENDA
ON CHANNEL MIX, THINGS LIKE
DRUGSTORES, CLUBS, DOLLAR
STORES, E-COMMERCE, FOOD
SERVICE, THAT IS ALLOWING US TO
BE OPTIMISTIC ABOUT THE GROWTH
AGENDA MOVING.
MARIA: YOU'VE GOT BUSINESSES
ALL ACROSS THE WORLD.
WE WANT TO GET YOUR TAKE ON HOW
THINGS ARE GOING.
HOW WOULD YOU CHARACTERIZE THE
ECONOMY AND THE DEMAND FROM THE
CONSUMER TODAY?
DATA, WE SEE MOST PARTS OF THE
TIME FROM A CONSUMER STANDPOINT
AND THAT IS VERY POSITIVE, NOT
ONLY FOR FOOD AND BEVERAGE, THE
INDUSTRY, I MEAN, BUT YOU SEE
ACROSS MANY SECTORS OF THE
MARIA: WHAT ARE YOU EXPECTING
IN TERMS OF THE TRADE DISPUTE,
HAS THAT HAD AN IMPACT SO FAR,
TO REACH A NEW TRADE PACT ON
WEIGHING THREATS OF AN
RETALIATE.
HOW DOES THAT IMPACT KRAFT
MINES.
>> WE ARE A GLOBAL COMPANY AS
YOU MENTIONED.
WE HAVE PRESENCE IN OVER 100
COUNTRIES AND HAVE MANUFACTURING
AND WE BELIEVE THAT IF GLOBAL
GOODS CAN FLOW, THE ECONOMY CAN
PROSPER AND CONSUMERS CAN
BENEFIT FROM THAT.
SPECIFICALLY IN NORTH AMERICA,
WE ESTABLISHED OUR SUPPLY CHAIN
BASE IN THE UNITED STATES, SO
WE'RE NET EXPORTERS TO CANADA
AND TO MEXICO.
SO THE UNCERTAINTY ON TARIFFS IS
SOMETHING THAT CAUSES US PAUSE,
RIGHT, BECAUSE ALL THE INVESTORS
THE RULES OF THE GAME AND PRICE
POINTS AND SO ARE MORE DIFFICULT
TO PREDICT.
WE REALLY HOPE THIS WHOLE
SITUATION WITH TARIFFS CAN BE
SOLVED IN A SHORT PERIOD
MARIA: HAS THIS IMPACTED COSTS,
A LOT OF PEOPLE ARE WORRIED THAT
YOU'RE SEEING INCREASING COSTS
IN YOUR COMPANY AND ACROSS THE
SIGNIFICANT IS
HOGNIFICANT IS
HOWNIFICANT IS
HOW SFICANT IS
HOW SIGCANT IS
PRESSURE?
>> IT DOES IMPACT.
YOU HAVE OIL PRICES GOING UP,
YOU HAVE TARIFFS ON FINISHED
GOODS AND COFFEE AND KETCHUP IN
CANADA, WE HAD TARIFFS ON THE
MEAT SIDE IN MEXICO AND VICE
VERSA.
INFLATION COST NOT ONLY IN THE
UNITED STATES, NORMALLY THROUGH
THE ECONOMY WITH LOGISTICS,
TRANSPORTATION, LABOR, IT'S MORE
PRESSURE BUT THE TARIFFS IS
ADDING AN ADDITIONAL LAYER TO
THIS.
MARIA: ARE YOU EXPECTING TO
CONTINUE TO RAISE PRICE AS A
CONSUMERS, GIVEN THE COSTS YOU
FACE?
>> WHAT WE'RE DOING THAT I THINK
IS THE RIGHT APPROACH IS GO
CATEGORY BY CATEGORY, REALLY TO
THINK GOOD, BETTER, BEST IN EACH
ONE OF THEM, RIGHT.
WE SEE WHERE THE CONSUMERS ARE
AND WHAT YOU CAN DO TO MITIGATE
AS MUCH AS WE CAN SO WE CAN
REALLY BE GROWING VOLUMES WITH
THE RIGHT PROFITABLE ENVIRONMENT
SO WE CAN REINVEST BEHIND OUR
PRODUCTS, BRANDS AND PEOPLE,
RIGHT.
SO IT'S REALLY A CATEGORY BY
CATEGORY ANSWER TO YOUR
QUESTION.
BUT IT'S NO DOUBT IF INFLATION
COSTS CONTINUE TO MATERIALIZE,
THAT'S GOING TO PUT A LOT OF
ENVIRONMENT.
IT'S BEEN PRETTY SIGNIFICANT SO
FAR.
DO YOU THINK IT CONTINUES OR IS
IT ALL ABOUT THE TARIFFS?
>> I THINK THE SHORTER THIS
US, RIGHT, AND NOT ONLY FROM A
COST STANDPOINT, PRETTY MUCH
FROM PLANNING CAPACITY, HOW CAN
YOU INVEST FOR THE LONG RUN AND
ENVIRONMENT.
SO EVEN THOUGH WE'RE SEEING
THAT, WE STILL BELIEVE THIS CAN
BE TRANSITORY TO A BETTER PLACE
EXPECTING PRICES TO GO HIGHER?
GOOD, BETTER, BEST STRATEGY.
VOLUMES ON A MORE VALUE
PROPOSITION.
AGGREGATING MORE TO THE CATEGORY
FROM A --
MARIA: WHICH CATEGORIES?
>> LIKE HEINZ MAYO.
WE BROUGHT THE PREMIUM TO THE
CATEGORY, THE WHOLE DISCUSSION
ON MAYO IN AMERICA, SO FAR, WE
HAD THE HEINZ MAYO BEING
LAUNCHED AS A PREMIUM TO THE
SEGMENT.
WE HAVE AN EXTRAORDINARY PRODUCT
THAT'S DIFFERENTIATED AT
DIFFERENT PRICE POINTS.
HAVING THIS STRUCTURE BY
CATEGORY WHEN YOU THINK ABOUT
CHEESE, NUTS, SAUCES, MEALS,