Kraft Heinz celebrates 40 years in China: transforming for the future

This year marks a milestone for Kraft Heinz as it is celebrating its 40-year journey in China.

The company established its first joint venture in Guangzhou, Guangdong province, in 1984. Ever since, it has been providing delicious, high-quality products to meet the changing tastes of Chinese consumers, from globally iconic products like Heinz Tomato Ketchup to the relentless innovation of locally loved Master Soy Sauce.

Starting with its Heinz baby food products, Kraft Heinz today employs 2,500 people, operates five factories, and works with more than 1,500 business partners in China.

"This growth has enabled us to develop a diverse product portfolio encompassing baby food, Chinese and Western sauces and condiments, and we have positioned China as one of the growth engines for our business in Asia and globally," said Frederico Freire Jardim, president of Kraft Heinz Asia.

Kraft Heinz's consumer-centric value has consistently driven its growth as a global food company. In 2010, the company acquired two iconic local brands in China, Guanghe and Master (Weishida), renowned for their fermented bean curd and soy sauces, respectively. The strategic move has enabled Kraft Heinz to remain focused on the long-term growth of its iconic Heinz brand while diversifying its products to cater to evolving trends in Western and Chinese cuisines.

In 2020, Kraft Heinz moved its Asian headquarters from Singapore to Shanghai. This reaffirms Kraft Heinz's long-term commitment to the Chinese market and its dedication to serving the needs of its consumers while underscoring the importance of the Chinese market in its global strategy.

"We have grown alongside with China and are incredibly proud of our journey here. From the ground up, we have devoted the last 40 years to nurturing and expanding our presence, where we achieved seven consecutive quarters of growth in China, continuing until the first quarter of 2024," he said.

Jardim attributes Kraft Heinz's success in China to several key factors: a nimble localization strategy that allows the company to adapt to market trends quickly; high-quality products prioritizing safety; and a dedicated research and development team focusing on innovating products tailored to local tastes.

"Today, 99 percent of our products in China are sourced locally. We operate as a fully integrated in-China, for-China business, dedicated to serving Chinese consumers," he said.

Sustainable Growth

"We are committed to sustaining our growth and seizing emerging opportunities. In the coming years, we will prioritize developing a 'future portfolio' that emphasizes nutritional health. Our dream is to be the leader in elevating and creating food that makes you feel good. This is the North Star that points our way forward," he said. "Consumers are becoming increasingly aware of how food impacts their daily lives. I believe the nutritional aspect presents the most significant opportunity for our new product development in the Chinese market."

Capturing the rising trend, Kraft Heinz has been expanding its ready-to-cook meals under the Heinz brand. This will enhance its presence in the 'Away from Home' sector and solidify its long-term success in the region. "We are now focusing on both fronts: directly serving consumers through retail and expanding our presence in the food service industry," he added.

The company is pursuing digital transformation in production efficiency in response to China's swift digital evolution. Jardim said: "We are empowering digital solutions and accelerating green transformation across our production facilities.

"Over the past three years, we have invested 670 million yuan ($94.8 million) in capital expenditure to improve operational efficiency and to expand production capacity in China.

"We will continue investing for the future, improving efficiency, saving energy and reducing emissions by optimizing digital intelligence across our business operation."

"We remain confident in China's future. We will continue living up to our dream, which is to be the leader in elevating and creating food that makes you feel good, inspiring moments of happiness through our iconic brands and products while bringing a positive impact on our communities and planet as we aspire to lead the future of food in China," Jardim added.