Kraft Heinz talks with Amazon, Walmart daily to speed food deliveries

LONDON: Kraft Heinz speaks daily with Amazon.com and Walmart Inc, hoping to speed up deliveries as customers worldwide stay home and shop online to protect themselves from the COVID-19 pandemic, Kraft Heinz’s CEO said.
Kraft Heinz, which makes packaged food products from Planters peanuts to Heinz Ketchup, is among several major food companies that has increased production to help retailers respond to panic-buying of staple goods like canned food, toilet paper and cleaning products.
“Amazon and Walmart and the others have faced a huge increase in demand. I think the bottle-neck is being able to deliver to people’s homes, not production,” Kraft Heinz Chief Executive Miguel Patricio said in an interview on Friday.
“Penetration has increased for them (Amazon), more people are subscribing – it’s big demand and you have to adapt your logistics system to attend this demand.” Patricio said Kraft Heinz was producing “a lot” more for Amazon, but declined to provide specific numbers.
“They are trying to simplify their portfolio of products and focus on things that are more vital at this moment.”
Kraft Heinz is increasing overall manufacturing and shipping efficiency by cutting production of some items, for instance reducing less popular flavours of a given product, Patricio said. — Reuters

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