Kraft Heinz says it will commit $3 billion to revamp its U.S. manufacturing plants, marking its largest investment in domestic facilities in a decade. The investment is aimed at making its 30 plants across the United States more efficient, potentially offsetting the impact of tariffs, said Pedro Navio, president of Kraft Heinz North America.
Navio said the upgrades would not only reduce costs but also speed up the development and launch of new products, helping the company maintain its market share amid rising costs and slowing consumer spending. "It goes beyond just efficiencies or dealing with the current tariff challenges," Navio said in an interview with Reuters. "This investment is about producing food for the long term."
Kraft Heinz, co-headquartered in Pittsburgh and Chicago, is known for products such as Heinz ketchup, Kraft macaroni and cheese, and Philadelphia cream cheese, has faced higher costs due to tariffs on imports, including coffee. While imports from China are minimal, the U.S. tariff policy has increased costs on other goods, the company said.
Despite the economic pressures, Kraft Heinz is moving ahead with the investment to fortify its U.S. operations. The initiative is expected to create approximately 3,500 construction jobs, though Navio said the company does not anticipate adding permanent employees beyond that.
The company said it sources most of its raw materials domestically, including tomatoes grown in California and potatoes from Idaho. Some products manufactured in the U.S. are exported to Canada, Navio added.
Kraft Heinz joins other major manufacturers, such as Kimberly-Clark and Anheuser-Busch InBev, which have also announced significant investments in U.S. production facilities in recent weeks.
Some known U.S. states with Kraft Heinz facilities include:
Illinois – (Chicago area, including the former Kraft headquarters in Glenview)
Iowa – (Davenport, Cedar Rapids)
California – (Fresno, Stockton)
Pennsylvania – (Allentown, Lehigh Valley)
Virginia – (New Century plant in Suffolk)
Ohio – (Fremont, Massillon)
Michigan – (Holland)
Wisconsin – (New Ulm)
Missouri – (Columbia)
Texas – (Garland, San Antonio)
North Carolina – (New Century facility in Fremont)
Oregon – (Portland area)