Exclusive-Ketchup maker Kraft Heinz investing $3 billion upgrading US manufacturing

By Jessica DiNapoli

NEW YORK (Reuters) -Kraft Heinz is spending $3 cardinal to upgrade its U.S. factories, its largest concern successful its plants successful a decade, adjacent arsenic executives accidental user sentiment is astatine its second-lowest constituent successful 70 years, and it has chopped income and nett forecasts.

The upgrades volition assistance little costs by making the plants much efficient, which successful crook whitethorn assistance offset President Donald Trump's tariffs, which factored into the company's determination to marque the investment, said Pedro Navio, Kraft Heinz's president of North America, successful an interrogation with Reuters.

The concern besides allows the packaged nutrient shaper to travel up with and merchantability caller products faster, helium said.

Kraft Heinz manufactures its market-leading Heinz ketchup, Kraft macaroni and food and Philadelphia pick cheese, among different products, astatine 30 plants crossed the United States. Kraft Heinz told Wall Street analysts past period that tariffs were adding to its costs and that consumers were buying little owed to economical uncertainty.

But the institution is moving guardant and making the caller concern present to support its marketplace share, Navio said.

"It goes beyond conscionable efficiencies oregon dealing with the existent tariff challenges," helium said, saying the concern allows Kraft Heinz to nutrient nutrient for the agelong term.

The institution is presently facing tariffs connected imports specified arsenic coffee, aft the United States past period implemented a 10% levy connected each imported goods. Its imports from China, which faces higher tariffs, are negligible, a spokesperson said.

Kraft Heinz, which besides roasts and sells Maxwell House coffee, asked suppliers for a 60-day announcement earlier putting done terms hikes.

Nearly each of what Kraft Heinz sells successful the United States is made domestically, Navio said, adding that the institution grows its ain tomatoes successful California and potatoes successful Idaho, for example. It exports immoderate of what it manufactures successful the United States to Canada, Navio said.

The institution expects the concern volition make astir 3,500 caller operation jobs wherever the plants are located. Navio said the institution doesn't expect the request for further employees beyond that.

Facial insubstantial shaper Kimberly-Clark and brewer Anheuser-Busch InBev person made akin announcements successful caller weeks.

(Reporting by Jessica DiNapoli successful New York; Editing by Aurora Ellis)