Jim Cramer Blasts Kraft Heinz for Mismanagement Amid Struggles in the Packaged Food Space
Kraft Heinz (NASDAQ: KHC) is facing mounting scrutiny as CNBC’s Jim Cramer sharply criticized the company’s performance and leadership, calling it “a really poorly run company.” A longstanding titan in the packaged food sector, Kraft Heinz continues to lag behind competitors due to operational inefficiencies, weak innovation, and a failure to adapt to shifting consumer preferences.
Cramer’s remarks follow the company’s consistent underperformance on Wall Street. Kraft Heinz shares have dropped more than 30% over the past five years, significantly underperforming compared to broader market indices. With sluggish growth and stagnant product development, investors are growing increasingly frustrated.
“They don’t know how to make money,” Cramer said, pointing out the contrast between Kraft Heinz and more agile FMCG companies like PepsiCo and General Mills, which have embraced premiumization, health-forward innovation, and supply chain optimization.
The critique underscores a broader trend hitting legacy packaged food brands: the inability to pivot fast enough amid consumer demand for healthier, fresher, and more sustainable options. Brands that once dominated store shelves are losing relevance as shopper behavior shifts toward functional foods, plant-based options, and clean-label ingredients.
Kraft Heinz, the result of a 2015 mega-merger backed by 3G Capital and Berkshire Hathaway, aimed to drive growth through aggressive cost-cutting. However, critics argue this strategy stripped the company of its ability to invest in core brand development and product innovation. As a result, the portfolio remains heavily reliant on dated SKUs with limited traction among younger consumers.
This recent spotlight raises important questions for FMCG stakeholders: Is traditional brand equity enough to ensure long-term profitability? And how much should legacy players invest in agile innovation frameworks to remain competitive?
While management insists it is working on a strategic turnaround—including new product launches and marketing reinvestment—analysts remain divided on whether these initiatives go far enough. As the FMCG landscape grows more fragmented and consumer-driven, Kraft Heinz’s trajectory could serve as a cautionary tale for incumbents slow to evolve.