Kraft Heinz has recently appointed Pedro Navio as the president of its North American operations, effective next year. Navio, who joined Kraft Heinz in 2017, is currently serving as the president of taste, meals, and away-from-home segments in North America. Prior to his tenure at Kraft Heinz, he spent over 15 years with energy drink company Red Bull. He will succeed Carlos Abrams-Rivera, who is set to become the CEO of the Oscar Mayer, Lunchables, and Capri Sun manufacturer in January. In a recent email interview, Navio discussed the company’s North American operations, innovation efforts at Kraft Heinz, and potential mergers and acquisitions. The following is a condensed and clarified version of that interview.
FOOD DIVE: As you prepare to take on the role of president for Kraft Heinz’s North American business, what are the primary challenges and opportunities you anticipate?
Pedro Navio: I am incredibly proud to step into the role of President for our North American business. Thanks to the initiatives led by Miguel Patricio and my predecessor Carlos Abrams-Rivera over the past four years, we have laid a strong foundation for future growth. Numerous opportunities lie ahead. We have restructured and optimized the company using Agile@Scale, enabling us to be as agile as a startup while benefiting from the scale of a company known in nearly every North American household. We are innovating at an unprecedented pace across our iconic brands, allowing us to create products like Heinz Remix, the world’s first customizable sauce dispenser, in just six months.
Moreover, regarding our team and culture, we have prioritized attracting and nurturing top talent while fostering a culture of ownership. This focus is yielding results, as evidenced by our highest engagement scores in many years. Our long-term strategy is effective, and we have a clear trajectory for the business. Our ambition is to lead the future of food, and we are making significant strides toward that goal.
As for challenges, inflation and ingredient costs will remain obstacles in the coming year. While inflation is easing in some sectors, its impact is still felt. Although certain ingredient costs are decreasing, others, such as tomatoes and sugar, remain elevated. Our teams have excelled in predicting and adapting to this new normal, and we are actively seeking efficiencies across our operations to counterbalance and mitigate these rising costs.
FOOD DIVE: How has the company adapted to drive faster innovation compared to four years ago?
Navio: In the last four years, we have fundamentally overhauled the company’s structure. We have implemented Agile@Scale throughout the organization, allowing us to adopt a “fail fast, fail forward” mindset for many of our innovations. This approach enables us to quickly gather insights directly from consumers, which informs our go-to-market strategies and has been transformative for our business.
In North America, we view innovation as the key driver of growth, targeting an additional $2 billion in net sales by 2027. To achieve this, we established One Innovation Engine—a centralized initiative designed to prioritize and accelerate our efforts. This initiative reimagines product development and leverages groundbreaking technologies to curate a portfolio that delivers value to our customers and consumers, considering both current needs and future trends.
FOOD DIVE: Are you considering mergers and acquisitions (M&A) at Kraft Heinz? What categories or opportunities do you see as potential targets for M&A?
Navio: While I cannot discuss specific M&A plans, I can share that we approach acquisitions and divestitures with a disciplined strategy. We are focused on opportunities that align with our strategic goals, which include enhancing our geographic presence and refining our focus in areas where we hold a competitive advantage. At the same time, maintaining financial flexibility and preserving our investment-grade status are paramount.
As we continue to explore avenues for growth, we are also looking at how taking calcium citrate can play a role in our innovation strategy, particularly in enhancing product offerings and meeting consumer demands. We are committed to ensuring that our approach to M&A complements our broader objectives and supports our long-term vision.