Kraft Heinz confirms $3B investment in US manufacturing
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The ketchup maker is aiming to offset the impact of tariffs and weak consumer spending.
Published May 21, 2025
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Kraft Heinz will spend $3 billion on its U.S. manufacturing facilities, the company confirmed to Food Dive, the largest investment in its plants in decades.
Pedro Navio, president of Kraft Heinz’s North America operations, told Reuters last week that planned investments could add 3,500 employees to the Lunchables producer’s workforce. Part of Kraft Heinz’s investment includes a $400 million distribution center in DeKalb, Illinois, that is set to create 60 jobs, a transaction that was first announced in 2023.
Reuters was first to report the manufacturing investment. Kraft Heinz confirmed the news, but declined to provide further details to Food Dive.
As President Donald Trump threatens sweeping tariffs on imports, the spending on Kraft Heinz's U.S. factories could help it offset the impact of trade uncertainty. Tariffs factored into the company's decision to make the investment, Navio told Reuters.
The majority of the company’s products sold are made domestically. Notably, the company’s Maxwell House coffee brand faces tariffs on imported beans.
Kraft Heinz has struggled with declining sales as consumer concerns over inflation cause shoppers to cut back on spending. The company has prioritized the growth of its Away From Home business, including condiment dispensers at foodservice locations nationwide.
It's also expanding its product portfolio to broaden its reach into growing categories. This month, the company announced the launch of Lunchables with PB&J, aiming to cut into the market share of J.M. Smucker’s nearly billion-dollar brand Uncrustables.
Earlier this week, Kraft Heinz said it will explore “potential strategic transactions," according to, CEO Carlos Abrams-Rivera, in order to drive “profitable growth and value creation.”
TD Cowen analyst Robert Moskow said in a note to investors that Kraft Heinz should divest some of its products to avoid the negative financial impact from a downturn in sales.
