Kraft CG June 2021

LEADING

the Way

Kraft Heinz drives growth through transformation and collaboration

Q&A: Meet Diana Frost, Kelly Fleming & Jim Kelly GOING FOR GOLD Teaming up with Team Canada ahead of Tokyo 2020

GREEN MATTERS Steps to leave a lighter footprint

On-trend innovation hitting store shelves in

2021

(L-R) Kelly Fleming, Chief Category and Brand Officer; Diana Frost, Chief Growth and Sustainability Officer; Jim Kelly, Vice President, Retail Sales, Kraft Heinz Canada

CANADA’S FAVOURITE CREAM CHEESE,

NOW LACTOSE

FREE NEW

DRIVING GROWTH IN

2021

Dear Colleagues, At Kraft Heinz Canada, our North Star is to “Spark Happiness at Every Canadian Table.” We strive to provide delicious, high-quality food products to Canadians for all meal occasions. We bring our North Star to life by continually developing a pipeline of exciting innovations, leveraging the power of data to understand consumer behaviour, and seeking solutions to important issues facing our community such as climate change and food insecurity.

In 2020, we brought outstanding innovations to the market, including Kraft Hazelnut Spread, we continued to revitalize the premium Frozen category with CRAVE, and we successfully rebooted the Infant aisle with a renewed Heinz By Nature line. And we’re just getting started!

As a leader in the Canadian CPG industry, Kraft Heinz Canada has the iconic brands, the deep expertise and the strategic capabilities to drive profitable growth for our retail partners today – and for years to come. With our North Star as a guide, in this special supplement we’ll share the details on our plans to drive growth, including: • Bringing to market must-have innovations that Canadian consumers want such as 100% compostable Nabob and Maxwell House coffee pods, the latter of which was just announced as a Grand Prix New Product Winner; additional varieties of our popular Kraft Hazelnut Spread; our new fresh Renée’s Dips with no artificial ingredients or preservatives; the introduction of PürGrains, a ready-to-serve-in-90-seconds side dish powered by ancient grains; and a new way to enjoy our iconic KD, with new Flavour Boost packs, including unique offerings like Cotton Candy, Butter Chicken and Poutine, and so much more.

• Continuing our strong support for Food Banks Canada and responding to food insecurity in communities across Canada with the second year of the impactful Kraft Heinz Project Pantry in-store program.

• The exciting inroads we are forging in digital transformation that will bring deeper insights to data regarding shopper trends and behaviours.

• Our progress on sustainability, including our recently announced partnerships with Loop and the Canada Plastics Pact as we use our scale and agility to promote a more circular economy.

The COVID-19 Pandemic over the past 15 months has brought unprecedented challenges to our industry and throughout this period Kraft Heinz Canada has proudly supported our retail partners and Canadians from coast to coast.

With our North Star to guide us, we are on an inspiring journey of transformation and our goal is to find more opportunities to profitably grow with you. I hope you are as excited as we are about the many initiatives we have underway to deepen our partnership and drive mutual growth now -- and for the future!

Regards,

Bruno Keller President Kraft Heinz Canada

SPECIAL PROMOTIONAL FEATURE IN CANADIAN GROCER–JUNE/JULY 2021

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Kraft Hazelnut Spread Made with

. Low in Saturated Fat.

Now available il bl in i C Crunchy and d 45% LLess Sugar!*

*Than Original Kraft Hazelnut Spread Absence of palm oil does not imply a product is more sustainable than products with palm oil.

KRAFT HEINZ CANADA PARTNERS WITH CANADIAN

m a e T c i p m Oly

Committee. “We are thrilled to partner with passionate people who provide Canadians with high-quality taste and nutrition everywhere we go.”

In addition, the Canadian Olympic Committee will play an active role in raising awareness for Kraft Heinz Pantry Day, a 5-year, $20-million food donation initiative in partnership with Food Banks Canada to reduce food insecurity across the country.

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ith its recent partnership announcement with the Canadian Olympic Committee, Kraft Heinz Canada is looking to bring Canadians together around the passion for sport.

In May, Team Canada welcomed Kraft Heinz Canada to its family with a four-year Official Supporter partnership. The agreement is effective as of April 2021 and will run through the Paris 2024 Olympic Games. It also includes the 2022 Olympic Winter Games in Beijing and Tokyo 2020, which are fast approaching.

Fueled by passion and purpose, the new partnership connects Kraft Heinz Canada – and by extension its customers – to an exclusive and powerful platform. Knowing that 81 per cent of Canadians are fans of Team Canada, Kraft Heinz Canada is looking forward to teaming up with grocery retailers to solidify their commitment to Canada’s elite athletes in their pursuit of sporting excellence.

"

KRAFT HEINZ PRODUCTS HAVE BEEN A PART OF OUR LIVES FOR SO LONG THAT THE BRAND HAS BECOME SYNONYMOUS WITH BEING CANADIAN

“We are so proud to be partnering with the Canadian Olympic Committee,” says Bruno Keller, President, Kraft Heinz Canada. “Cheering for athletes during the Olympics brings all Canadians together and feeds our passion for sport. At Kraft Heinz Canada, our passionate people aim to spark happiness at every Canadian table by helping to feed Canadians every day.”

Kraft Heinz Canada is united in the COC’s vision to transform Canada through the power of sport. The partnership comes at a time of need for athletes, coaches, and the entire sport community as they make their final push towards the Tokyo 2020 Olympic Games. The partnership will be activated this summer through iconic Canadian brands Kraft Dinner and Kraft Peanut Butter.

“Kraft Heinz products have been a part of our lives for so long that the brand has become synonymous with being Canadian,” says David Shoemaker, CEO & Secretary General, Canadian Olympic

"

Through this partnership, Kraft Heinz Canada will have exclusivity in several categories, with the aim of taking top spot in consumers’ grocery baskets. Canadian favourites, Kraft Dinner and Kraft Peanut Butter will both be activating with integrated marketing campaigns this summer, in support of the Tokyo 2020 Olympics.

With its products found in more than 97 per cent of Canadian households, Kraft Heinz Canada is the country’s largest food and beverage company and has been part of the fabric of Canada for more than 100 years.

This is a strong place from which to go for gold – for the company, customers, consumers, and Team Canada!

SPECIAL PROMOTIONAL FEATURE IN CANADIAN GROCER–JUNE/JULY 2021

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Class

BEST IN

Kraft Heinz Canada’s Diana Frost, Kelly Fleming and Jim Kelly discuss transformational change at the company and how it’s committed to driving retailers’ businesses and delighting consumers What are the top consumer trends and tastes driving change in the food sector?

Kelly Fleming: The rediscovery of cooking and the meal experience during this past year has continued to put convenience at the forefront, whether it’s the rise of the digital grocery shopper or those seeking a meal solution without having to make tradeoffs. On top of that, Canadians want customized products and experiences with even greater emphasis on positive nutrition.

What excites me the most is how the growth in immigration and diversity is heightening consumers’ desire to experience culture through food.

How is Kraft Heinz responding to these trends in terms of new product innovation?

Kelly: We’re consumer obsessed, so these trends are at the forefront of our innovation approach. For example, our new platform PürGrains is a plant-based line of single-serve dishes powered by the goodness of ancient grains and available in bold, global flavours. Understanding these trends and insights combined with shopper-based research has allowed us to create a brand that will help us, and our retail partners, drive business.

Diana Frost: In terms of overall consumer growth spaces, we put them under three pillars: Nutrition (for example, alternative diets and holistic health); Taste (for example, expanded palate and texture); and Planet (for example, sustainability and reusability).

We’re excited to have a consumer-centric lineup to deliver on all these growth spaces in 2021. In addition to PürGrains, for example, we are launching Hazelnut Spread line extensions, which deliver on taste and nutrition with a crunchy texture and 45% less sugar. They also deliver on Planet, as they are prepared right here in Canada.

How do you infuse consumer insights into product development and brand strategy?

Diana: As part of our digital transformation, we have partnered with a technology and data science company that helps us understand and analyze more than eight million consumer

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SPECIAL PROMOTIONAL FEATURE IN CANADIAN GROCER–JUNE/JULY 2021

Diana Frost is Chief Growth and Sustainability Officer at Kraft Heinz Canada. A senior executive with more than 15 years’ experience, Diana oversees strategy and whitespace, research and development, digital transformation, consumer insights, and sustainability for Canada’s largest food and beverage company.

Kelly Fleming is Chief Category and Brand Officer at Kraft Heinz Canada.

Since joining Kraft Heinz Canada in 2010 as an associate brand manager, Kelly has held several progressive roles working on some of Kraft Heinz Canada’s most successful and iconic brands such as Heinz, Philadelphia, and Kraft Dinner.

Jim Kelly is Vice President, Retail Sales, at Kraft Heinz Canada. He is a resultsoriented, agile sales leader with a proven track record of delivering topand bottom-line growth for some of Canada’s most iconic brands. With over a decade of experience in the CPG industry, Jim leverages data to build high-performing teams that deliver results.

conversations in the food space. This allows us to accurately predict and understand signals around emerging trends, benefits, claims and brands to fuel our pipeline. In turn, that enables us to be a better partner for retailers, as we can help them understand their customers better and what brands and products they’re looking for. On the product development side, we have started agile and focused innovation teams working on key projects and priorities to drive speed and quality.

What can retailers and consumers expect to see from Kraft Heinz on the marketing and engagement front?

Kelly: We’ve changed the way we connect with consumers to help our brands engage in more conversations. Last year, we created an internal digital arm called “The Kitchen,” focused on delivering relevant, highly engaging content at the speed of culture. Data driven and personalized, we’re able to shorten the time between idea and execution to insert our brands into conversations that consumers care about. This level of agility has helped generate meaningful buzz that drives brand awareness and purchase intent. We’re putting our money where our mouth is—increasing our investment with consumers by +30% to deliver a seamless omni-channel experience across the physical and digital space.

What is your approach to building successful partnerships with grocery retailers?

Jim Kelly: As we embark on our transformational journey, our Canadian “North Star” guides everything we do: we will spark happiness at every Canadian table. For Kraft Heinz, that means becoming an indispensable partner to retailers.

To do that, we’ve identified three key focus areas.

The first one is collaboration, which is critical to building and executing plans that are agile, reliable and trustworthy. The second area of focus is communication. We will be even more deliberate and structured about how we communicate with our partners. We’ve defined a mission to be responsive, transparent and proactive through all of our interactions. The third area of focus is commitment, which means becoming a best-in-class service provider, committing to driving category value, and simplifying how we do business. Customer partnerships are core to our transformational journey, so we’re very excited about what lies ahead.

Kelly: Successful partnerships are built on transparency and trust. To deepen our partnerships with retailers, we are open about our long-term strategies in order to co-create a joint long-term vision.

Collaboration across the entire value chain is also key to ensuring we’re providing solutions that are mutually beneficial. For example, we’re improving our collaborative forecasting by implementing new technologies that will amp up our demand-planning capabilities to help us rapidly predict and solve for potential pinch points. When it comes down to it, we are approaching our partnerships with a value creation mindset.

What are the benefits of collaboration for both sides?

Jim: The ultimate goal is to delight the consumer by helping them find the brands they love—when and where they want to shop. By partnering together, we believe there are opportunities to create value throughout the entire value chain. That can range from bringing innovation to market faster, to sharing local or global consumer insights, to finding new and agile ways of connecting with consumers.

What would you most like grocery retailers to know about what’s in store for Kraft Heinz Canada?

Kelly: Our new platform approach puts the consumer at the centre of everything we do. We’re able to address consumer and shopper trends more effectively while fully taking advantage of our scale. It didn’t take a global pandemic to realize agility is part of our DNA, but we are harnessing that power in our transformation journey to ultimately bring solutions to the market with speed and accuracy.

Diana: We are excited to partner with our retail partners to spark happiness at every Canadian table and drive mutual top- and bottom-line growth. As a consumer-first organization, understanding consumers now and in the future fuels everything we do with our portfolio and how we engage with our retail partners.

Jim: As we continue on our journey of transformation, our mindset is to engage and collaborate with our retail partners by bringing value with every interaction. We are a consumer-first organization that will look to harness the power of data and insights to help consumers find the right product at the right store, in the right space and at the right price.

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D U CING O R T IN MASHUPS 2021:

Careful what you post,

Hot Sauce + Ranch

Heinz might turn it into a sauce.

Wasabi + Garlic Aioli Tartar Sauce + Ketchup

AVAILABLE FOR LIMITED TIME ONLY

a d a n a C o Back t

HEINZ KETCHUP COMES

The anticipation is finally over, and now the pouring can begin!

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of Quebec's business expansion program. The project will create 30 new jobs and help maintain approximately 750 more at the Mont Royal facility.

raft Heinz Canada has completed the installation of its new production line for Heinz Ketchup to be prepared and sold in Canada.

The original ketchup repatriation announcement was made in November 2020 to much fanfare and, in late June 2021, the first official bottle of Heinz Ketchup proudly prepared in Canada came down the line at Kraft Heinz Canada’s flagship Mont Royal plant in Montreal.

"We are pleased to be investing in our people and our Mont Royal plant in bringing ketchup production back to Canada from the U.S.," says Bruno Keller, President, Kraft Heinz Canada. "Canadians are passionate about Heinz Ketchup, and returning production of this iconic product back to Canada for Canadians is part of our long-term strategy to prepare more of our products here."

The new line is expected to produce over 100 million pounds of Heinz Ketchup for Canadian consumers in the first two years alone as production ramps up. The project is a joint investment between Kraft Heinz Canada and the Government

The Mont Royal line will produce almost all of the ketchup for sale in Canada and, as a result, will receive the Aliments du Québec (ADQ) certification, which helps promote products made by the Quebec agri-food sector.

In the longer term, Kraft Heinz Canada will be exploring the feasibility of processing tomatoes in Canada, however, the first step is to have ketchup manufacturing and bottling at the Mont Royal plant.

Kraft Heinz Canada continues to be a significant consumer of local tomatoes from Leamington, Ont. In 2020 alone, the company used more than 176 million pounds of Leamington tomatoes to make Canadian favourites like Classico Pasta Sauce, Heinz Tomato Juice and Heinz Beans.

Heinz Ketchup has also been a busy brand in Canada since the pandemic began, including 2020’s award-winning All-Red Heinz Ketchup Puzzle campaign, which featured a 570-piece puzzle consisting of only red pieces and intended to help Canadians pass the time at home during COVIDrelated lockdowns. Proceeds from the sale of a limited run of puzzles went to Food Banks Canada.

"This is a game-changer for our company and for Canadian consumers," says Kelly Fleming, Chief Category and Brand Officer for Kraft Heinz Canada. "We've listened to consumers who have told us they want their ketchup prepared in Canada. As the market leader, and with increased demand in the marketplace, the time was right to bring production of this iconic product back home."

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Zero Waste*.

Zero Effort.

100% Compostable†.

Introducing Maxwell House and Nabob 100% compostable coffee pods. The same consistently good coffee you love, now in a plant-based pod that leaves zero waste. The pod continues to work hard for the planet long after you’ve finished your cup of coffee.

Step

1

Brew a delicious and convenient cup of Maxwell House or Nabob coffee.

Step

2

Simply toss the pod in the compost bin and it goes back into the soil that grew it, helping to protect the health of the earth.

Step

3

The pod helps enrich the soil and continues to work hard for the planet long after you’re done with it.

Lid

Made from paper, water-based inks and other compostable materials.

Ring Made from a blend of compostable materials including coffee bean skins, which make up over 20% of the ring.

Filter Made from plant-based materials.

† For collection in Municipal programs, where approved. / Pour la collecte dans les programmes municipaux, là où ils sont APPROUVÉS. Cert #10528537

Maxwell House and Nabob 100% compostable pods are proudly made locally in Ontario, Canada

* For you †Certified by BPI

y t i l i b a n i a Sust

GROWING

From compostable packaging to new partnerships, Kraft Heinz Canada is reducing its environmental impact while meeting consumers’ needs

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tackle Canada’s plastic waste and pollution problem, with a vision for a circular economy for plastics.

“Packaging waste can have a significant detrimental impact on the environment and is an industrywide challenge that we must all do our part to address,” says Fischer.

n tackling the world’s biggest environmental issues, even small steps can have a big impact.

Earlier this year, Kraft Heinz Canada was among the first CPG brands to join Loop, a new circular reuse platform by TerraCycle. Shoppers can buy a range of grocery and household items in durable, reusable packaging. Using a milkman-style system, consumers can have their empty packages picked up, sanitized, refilled and reused. Kraft Heinz first launched Heinz Ketchup on Loop and Ethical Bean coffee is coming soon.

Reducing plastic and packaging waste also fulfills ever-growing consumer demand for more planet-friendly options. In a December 2020 survey commissioned by Kraft Heinz Canada, 78% of Canadians said they want zero-waste packaging on grocery products and 65% said they make an effort to choose brands whose products come in sustainable packaging, meaning it’s recyclable, reusable or compostable.

“Our beloved Heinz Ketchup has always been available in a recyclable glass bottle, but now, thanks to the partnership with Loop, it’s also reusable,” says Nicole Fischer, Head of Sustainability at Kraft Heinz Canada. “We know Canadians seek more sustainable options they can feel good about and we are pleased that through this partnership, we can make sustainable options possible.”

While it might seem like a relatively small step in addressing the planet’s environmental problems, it’s an important one for Kraft Heinz. The partnership with Loop is part of a broader sustainability goal at Kraft Heinz to make 100% of its packaging recyclable, reusable or compostable by 2025.

As part of this global commitment, Kraft Heinz Canada was also a founding signatory to the Canadian Plastics Pact. The pact brings together businesses and other stakeholders to collectively

For CPG companies like Kraft Heinz, the challenge is marrying consumers’ desire for sustainable packaging with their need for convenience.

That’s particularly true with single-serve coffee pods. While research shows that Canadians believe the sustainability of food and beverage packaging is important, they’re not willing to sacrifice the convenience or taste for an environmentally friendly coffee pod.

With the launch of Maxwell House and Nabob 100% compostable coffee pods, Kraft Heinz is able to offer consumers a convenient offering they can also feel good about. Made entirely from plant-based materials, all pod components and its inner bag are 100% compostable, and the outer carton is 100% recyclable, leaving zero waste for the consumer.

While there are other recyclable pods on the market, one challenge for consumers is they’re messy and require time and effort to properly recycle, including removing the lid, ring, mesh filters and coffee grounds. With Maxwell House and Nabob 100% compostable coffee pods, this tedious process is eliminated as all components are formulated to break down into compost. “With sustainable

SPECIAL PROMOTIONAL FEATURE IN CANADIAN GROCER–JUNE/JULY 2021

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Boost the KD fun with a bold and buzzworthy new taste experience!

NEW KD LIMITED TIME OFFERS!

KD Paw Patrol available now to coincide with Paw Patrol: The Movie!

Get yours soon!

Within Healthy Living & Community Support, Kraft Heinz has a nutrition compliance target of 85% across its global portfolio of products based on nutrition guidelines from the World Health Organization. Kraft Heinz will achieve this target by reducing sugar across its portfolio and reducing salt in key categories, increasing its plant-based offerings, and simplifying its ingredients.

The company’s efforts are sure to resonate with consumers globally and in Canada. In a Kraft Heinz survey on sustainability, 83% of Canadians said they expect large companies like Kraft Heinz to take responsibility for making our world more sustainable. “Not only are our consumers, customers and shareholders demanding it of us,” says Fischer, “it’s also the right thing to do.” packaging from beginning to end, it is a simple one-step process,” says Fischer. “Consumers can simply toss the pod into the compost bin and it will decompose.”

Consumers can expect more compostable solutions from Kraft Heinz in the future. Kraft Heinz Canada is a proud member of the Compost Council of Canada, the central resource and network for the compost industry in Canada. As a member of the Council, the company will work to advance packaging innovations to reduce food waste and single-use plastics while advocating the importance of compostability across Canada.

The steps Kraft Heinz Canada is taking on its sustainability journey are part of the company’s new global approach to Environmental, Social and Governance (ESG). At Kraft Heinz, these efforts line up under three pillars: Environmental Stewardship, Responsible Sourcing, and Healthy Living & Community Support.

Within Environmental Stewardship, one focus area is operational efficiency—reducing waste, energy, greenhouse gases and water, as well as incorporating sustainable packaging into its products.

Responsible Sourcing is the company’s commitment to holding itself and its suppliers accountable for continuous improvement. For example, Kraft Heinz is making progress on its commitment to switch to exclusively cage-free eggs, and has a commitment to sustainably source 100% of Heinz Ketchup tomatoes by 2025 in accordance with its Sustainable Agricultural practices.

Greener Operations At Kraft Heinz Canada, sustainability success is found at all levels of the organization: • At the company’s headquarters in Don Mills, Ontario, employees led the elimination of the majority of non-recyclable, single-use cups and utensils used by 400+ employees at the office every day. The initiative diverts more than 120,000 single-use cups from landfills yearly and nearly 10,000 pounds of singleuse plastic waste.

• The Kraft Heinz sales office in Dartmouth Nova Scotia is a LEED-certified building with sustainable features, including a green roof, electric vehicle charging stations, solar power panels, rainwater collection, geothermal heating, motion sensor lighting, shuttle bus service, and more.

• At the Mont Royal manufacturing facility, dedicated employee teams for water, energy and waste optimization work towards achieving the company’s sustainable manufacturing targets. The efforts include everything from water reduction in the boiler room, to LED lighting in the warehouse, to diverting a large portion of waste to animal feed.

• Over the past year, the Milton Distribution Centre has diverted more than five million pounds of product from landfill.

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to the Table

WELCOMING EVERYONE At Kraft Heinz Canada, diversity, inclusion and belonging are major drivers of creativity, innovation and growth

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uilding a diverse and inclusive workplace culture isn’t about simply writing a policy — it requires action.

Kraft Heinz, which was named one of the World’s Best Employers 2021 by Forbes, is a shining example of a workplace that is taking meaningful action on diversity, inclusion and belonging globally. The company’s commitment is one of six core values, all of which start with “we:” “We demand diversity.”

“Kraft Heinz Canada is committed to building a diverse workforce and an inclusive culture, where everyone is welcome at our table,” says Andrea Scott, Employee Lead for Kraft Heinz Canada’s Diversity, Inclusion and Belonging committee, which tackles education, awareness, ally-ship and programming. “We foster a work environment that embraces differences and values the unique perspectives and lived experiences of our global workforce.”

Kraft Heinz believes diversity, inclusion and belonging are not just the right thing to do, but are also major drivers of creativity, innovation and growth for its business because people can be their full and best selves at work.

Globally, the company’s diversity, inclusion and belonging commitment focuses on three strategic areas: hiring and growing talent from diverse backgrounds and perspectives, developing inclusive leaders, and tracking and reporting on its progress.

How does this come to life in Canada? Kraft Heinz Canada supports several local initiatives and partnerships that put that commitment into action: • Being a signatory to the BlackNorth Initiative’s CEO Pledge against systemic anti-Black racism.

Actions to date include partnering with local

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organizations like the Ethnic Food Incubator, spearheaded by the Canadian Black Chamber of Commerce and delivered by Spring Activator, and outreach to Black student organizations at universities.

• Recruiting partnerships with organizations such as Ready, Willing & Able and Lime Connect to support job seekers with disabilities.

• A partnership with the University of Toronto Rotman School of Management’s “Return to Work” program for people returning to work after career absences (e.g., mothers).

• Partnering with the Hockey Diversity Alliance to grow the game with young Canadians from underrepresented communities who may experience barriers to playing.

• Flying the multi-coloured Pride flag every June and participating in employee-driven Pride events to support and celebrate the LGBTQ2+ community.

• Training for People Managers to help support employees who may be struggling with mental health issues and to foster a more inclusive workplace.

• Local days of learning associated with topics such as International Women’s Day, Emancipation Day, Orange Shirt Day, International Day for People with Disabilities, and more.

“As an employee of the company for 25 years, I’m proud to say I work for Kraft Heinz for a variety of reasons,” says Scott. “That includes the quality products we make for Canadians, the passionate people I work with every day, and because we welcome everyone at our table.”

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KRAFT HEINZ CANADA’S PANTRY DAY INITIATIVE HELPS

y it ur c e s In d oo F e c u d e R

A

s Canadians struggle through a second year of the COVID-19 pandemic, Kraft Heinz Canada will be there to partner with Food Banks Canada on the second year of its Pantry Day program to help feed Canadians experiencing food insecurity.

In May 2020, Kraft Heinz Canada stepped up to support those in need by donating 1 million meals to Food Banks Canada as well as Personal Protective Equipment (PPE) for volunteers working on the frontlines of Canadian food banks.

In October 2020, Kraft Heinz launched Kraft Heinz Pantry Day. An annual event occurring on October 16, World Food Day, where Canadians can join the fight against food insecurity by purchasing a participating Kraft Heinz product at their local grocery store, which will then be matched with a donation to Food Banks Canada. It’s the largest one-day food matching program in Food Banks Canada’s history.

“Food Banks Canada has seen an increase in food bank use as more Canadians experience financial hardship and food insecurity amid COVID-related closures,” says Matt Bruce, Senior Brand Manager, Community Programming and Corporate Partnerships at Kraft Heinz Canada. “We knew we had to do our part to support Canadians during this time of need."

In May alone, Canada lost 68,000 jobs and the unemployment rate rose to 8.2%, according to Statistics Canada, as lockdowns intended to curb the third wave of COVID continued to weigh on the economy.

Kraft Heinz Pantry Day marks another chapter in Kraft Heinz's history of supporting food banks in Canada. Through the Pantry Day initiative Kraft Heinz has committed to donating $20 million of food over the next 5 years to support Food Banks Canada, which serves about 650 affiliated food banks across the country.

“No one should ever have to wonder where their next meal is coming from," says Bruno Keller, President of Kraft Heinz Canada. “That's why our commitment to Food Banks Canada is so important.

Today, 1 in 8 Canadian households experiences food insecurity. This is an issue that affects all of us and, as the largest food company in Canada, we believe it's our responsibility to help."

The Pantry Day initiative is proudly supported by the efforts of more than 1,400 employees across the country, including about 1,000 at our Mont Royal plant who have been working 24/7 since the pandemic began to ensure we meet the increased demand from Canadian consumers and food banks.

For more information about the program, including a full list of participating products and retailers, please visit KHPantryDay.ca

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KRAFT HEINZ CANADA BRINGS EXCITEMENT TO STORE SHELVES WITH CROWD-PLEASING New Kraft Hazelnut Line Extensions

! n o i t a v o n in

After the breakthrough launch in 2020, Kraft Hazelnut Spread is back with two new offerings. Crunchy is filled with real hazelnut bits adding the extra crunch that consumers crave. With sugar as the principal barrier for consumers buying this category, new Less Sugar offers the same delicious taste, with 45% less sugar than original Kraft Hazelnut Spread. Made with no palm oil and low in saturated fat, both are proudly prepared in Canada

Kraft Heinz Introduces PürGrains

Kraft has introduced a plant-based line of single-serve dishes powered by ancient grains and bold, globally inspired flavours. Ready to serve in 90 seconds, the line is non-GMO-certified and rich in essential nutrients like fibre and iron. There are no artificial colours, flavours, or preservatives. This new line bridges the gap between wellness and enjoyment. Crafted with real and simple ingredients like quinoa, barley, and whole grain rice, it is available in three flavours: Thai Style Garlic Chili, Aztec Chipotle, and Santorini Lemon Dill.

Introducing KD Flavour Boost At Kraft Heinz we are continually developing impactful innovation we know Canadian consumers will love.

Our priority is to bring new products to the shelf that will drive consumer interest, basket size and profitability.

– Diana Frost

Canada’s #1 Mac and Cheese brand is bringing a bold new twist to the same cheesy taste consumers know and love from KD. New add-in KD Flavour Boost packets deliver an exciting taste experience.

Available in five limited-edition flavours: Buffalo Wings, Jalapeño, Poutine, Butter Chicken and Cotton Candy. This will drive a premium basket add-on by offering bold and buzzworthy flavours that resonate with Millennials and Gen-Z.

Chief Growth and Sustainability Officer

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Heinz Introduces CROWDSAUCED

Consumers are seeking flavoured inspiration to add sizzle to their favourite meals. So, Heinz is leveraging on-trend flavours shared by Canadians on social media to bring exciting and disruptive news to the category with the launch of three outstanding mash-up combinations: Tarchup: a perfect combo for fish and chips and seafood; Wasabioli: ideal for sandwiches and burgers; and Hanch: a perfect duo for wings and pizza. The fastest growing segments in sauces are comprised of bold and internationally inspired sauces. These exciting mash-ups are available for a limited time only, so get yours today!

Lactose-Free Philadelphia Cream Cheese

Spread the word! The #1 cream cheese in Canada has expanded its lineup to include new lactosefree offerings. The expansion by Philadelphia comes as the lactose-free segment is growing across all categories, given that 1-in-6 Canadians consider themselves lactose-intolerant and 37% are looking to reduce lactose. Proudly made with 100% Canadian milk, Philadelphia lactose-free is available in brick and tub format for consumers to enjoy as a spread or in baking and cooking.

CRAVE All-Day Breakfast Offerings

Breakfast is available all day with new, ridiculously good CRAVE frozen breakfast entrées! Introducing CRAVE Double Sausage Bacon-Loaded Tots and CRAVE Steak ‘N Eggs with Loaded Potatoes to provide consumers with the high-quality premium flavours and taste that have made CRAVE the top brand in the premium frozen segment. And joining the breakfast flavours, CRAVE has also launched Pesto Ravioli with Italian Sausage and Baked Chicken and Ham Macaroni and Cheese. So, go ahead, show your mouth a good time with new CRAVE line extensions!

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AHEAD OF THE

k c a P l a t i g Di At Kraft Heinz Canada, a digital transformation puts consumers at the centre of the business

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“Not only are we investing in how we use data to communicate and engage with consumers, but the back-end infrastructure is also incredibly important,” says Frost. “Without it, you don’t have the ability to flex to the demands that are constantly changing, both from the consumer and the retailer perspective.”

o the lucky people who got their hands on the "world’s slowest puzzle” from slow-pouring Heinz Ketchup, with 570 identical, all-red, ‘H-shaped’ pieces, the activity was an amusing way to pass some time during last year’s lockdown.

For Kraft Heinz Canada, the puzzle was the buzzgenerating result of a new marketing capability called “The Kitchen,” an internal agency dedicated to understanding and acting on inflection points in culture, based on social insights. And it was just one example of the company’s world-class digital transformation brought to life.

While a digital transformation had been underway for the past couple of years, Kraft Heinz accelerated its plans given COVID-19 and rapidly shifting consumer needs. “First and foremost, we are a consumer-obsessed organization, and ultimately, the purpose of our digital transformation is to deliver on consumer needs,” says Diana Frost, Chief Growth and Sustainability Officer at Kraft Heinz Canada. “All of our digital transformation goals are focused on putting the consumer at the centre of our decisions.”

Driving growth by focusing on consumer needs is the first of three interconnected pillars in the digital transformation plan. It includes personalized, relevant campaigns and content; marketing measurement and optimization; digital engagement (e-commerce); portfolio innovation and renovation based on consumer insights; and more.

The second pillar is strengthening its retailer relationships through operational efficiencies and engagement. This includes leveraging artificial intelligence, so Kraft Heinz can better deliver on its sales forecast accuracy; developing a “perfect store” strategy for an omni-channel consumer experience; and leveraging digital for pricing and promotional trade planning and monitoring.

The third pillar involves establishing advanced data capabilities to inform its business decisions, made possible by investments in modern infrastructure. Last year, Kraft Heinz was able to decommission its on-premises data warehouses in just nine months, moving half a trillion records into the Snowflake platform running on Microsoft Azure.

Kraft Heinz now has a single, unified data hub that drives its day-to-day operations globally. The data hub is also scalable and flexible enough to support new digital transformation projects.

An additional benefit of the new data platform is having access to data from first-party data sources.

Having first-, second- and third-party data is critically important for Kraft Heinz to deliver on personalization and engagement, says Frost. “Gone are the days of averaging consumer demographics like the 25- to 34-year-old suburban mom,” she says.

“We are focused on understanding not only demographics, but psychographics, including behaviours and interests, and then serving up more personalized conversations with consumers.”

Ultimately, the digital transformation and its advanced capabilities enable both Kraft Heinz Canada and its retail partners to better understand and serve consumers. “We are aiming for strong engagements with consumers by building unique and varied content and focusing on creating unique experiences that resonate with our audiences,” says Frost. “It’s only through this engagement that we’re able to learn more about our audience and develop those deeper connections to ultimately partner with our retailers and continue driving mutual growth for our categories together.”

SPECIAL PROMOTIONAL FEATURE IN CANADIAN GROCER–JUNE/JULY 2021

K19

Combining the goodness of real ancient grains with bold global flavours in one convenient package.

Start Ship September 6, 2021