Kraft Heinz Co

We purchase and use large quantities of commodities, including dairy products, meats, tomatoes, sugar and other sweeteners, edible oils, coffee beans, wheat products, other fruits and vegetables, eggs, and corn products to manufacture our products. In addition, we purchase and use significant quantities of resins, fiberboard, and cardboard to package our products, and we use electricity, diesel fuel, and natural gas in the manufacturing and distribution of our products. We continuously monitor worldwide supply and cost trends of these commodities.

During the three months ended March 30, 2024, we experienced lower commodity costs primarily for edible oils, dairy products, eggs, corn, and meats while costs for coffee and sugars increased. We manage commodity cost volatility primarily through pricing and risk management strategies including utilizing a range of commodity hedging techniques in an effort to limit the impact of price fluctuations on many of our principal raw materials. However, we do not fully hedge against changes in commodity prices, and our hedging strategies may not protect us from increases in specific raw material costs. As a result of these risk management strategies, our commodity costs may not immediately correlate with market price trends.

See our Annual Report on Form 10-K for the year ended December 30, 2023 for additional information on how we manage commodity costs.