Item 2.02. Results of Operations and Financial Condition.
On April 6, 2020, The Kraft Heinz Company issued a press release providing a
business update related to the novel coronavirus outbreak. A copy of the press
release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 8.01. Other Events.
The Kraft Heinz Company is filing this Current Report on Form 8-K to supplement
our risk factors included in Part I, Item 1A, Risk Factors to our Annual Report
on Form 10-K for the year ended December 28, 2019.
Supplemental Risk Factor
The outbreak of the novel coronavirus ("Coronavirus" or "COVID-19") could
negatively impact our business and results of operations.
In December 2019, an outbreak of illness caused by a novel coronavirus called
COVID-19 was identified in Wuhan, China. On January 31, 2020, the United States
declared a public health emergency related to the novel coronavirus and on March
11, 2020, the World Health Organization declared that the spread of the novel
coronavirus qualified as a global pandemic. The continued spread of COVID-19
throughout the United States and the international community has had, and could
continue to have, a negative impact on financial markets, on economic
conditions, and on portions of our business. COVID-19 could negatively impact
our business and results of operations in a number of ways, including, but not
limited to, the following:
•a shutdown of one or more of our manufacturing facilities due to illness could
significantly disrupt our production capabilities;
•a significant portion of our workforce could become unable to work, including
as a result of illness or government restrictions;
•a decrease in demand for away from home establishments, resulting from
government restrictions and social distancing measures, may adversely affect our
foodservice operations;
•an impairment in the carrying value of goodwill or intangible assets or a
change in the useful life of definite-lived intangible assets could occur if
there are sustained changes in consumer purchasing behaviors, government
restrictions, or financial results (e.g. there may be a heightened risk of
impairment in our foodservice reporting units if there is a sustained decrease
in demand in away from home establishments);
•an increase in working capital needs and/or an increase in trade accounts
receivable write-offs as a result of increased financial pressures on our
suppliers or customers;
•a change in demand resulting from restrictions on social interactions could
affect customers and consumers plans to purchase our products;
•a change in demand for or availability of our products as a result of
retailers, distributors, or carriers modifying their restocking, fulfillment, or
shipping practices;
•a shift in consumer spending as a result of the economic downturn could result
in consumers moving to private label or lower margin products;
•a change in trade promotion and marketing activities could occur in response to
changes in consumer viewing and shopping habits resulting from the cancellation
of major events, travel restrictions, and in-store shopping practices;
•a slowdown or stoppage in our supply chain could result from government
restrictions or if our suppliers, vendors, distributors, or third-party
manufacturers fail to meet their obligations to us or experience disruptions in
their ability to do so;
•a strain on our supply chain could result from increased consumer demand at our
retail customers, such as grocery stores, club stores, and value stores;
•an increase in commodity and other input costs could result from market
volatility;
•a fluctuation in foreign currency exchange rates or interest rates could result
from market uncertainties;
•an increase in the cost or the difficulty to obtain debt or equity financing,
or to refinance our debt in the future, could affect our financial condition or
our ability to fund operations or future investment opportunities; and
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•an increase in regulatory restrictions or continued market volatility could
hinder our ability to execute strategic business activities including
acquisitions and divestitures.
Additionally, COVID-19 could negatively affect our internal controls over
financial reporting as a portion of our workforce is required to work from home
and therefore new processes, procedures, and controls could be required to
respond to changes in our business environment. Further, should any key
employees become ill from the coronavirus and unable to work, the attention of
the management team could be diverted.
The potential effects of COVID-19 also could impact many of our risk factors,
included in Part 1, Item 1A, Risk Factors of our Annual Report on Form 10-K for
the year ended December 28, 2019, including, but not limited to changes in our
relationships with significant customers, suppliers, and other business
relationships; our ability to leverage our brand value to compete against
private label products; unanticipated business disruptions; the impacts of our
international operations; economic and political conditions in the United States
and in various other nations where we do business; changes in our management
team or other key personnel and our ability to hire or retain key personnel or a
highly skilled and diverse global workforce; risks associated with information
technology and systems, including service interruptions, misappropriation of
data, or breaches of security; impacts of natural events in the locations in
which we or our customers, suppliers, distributors, or regulators operate; our
ownership structure; additional impairments of the carrying amounts of goodwill
or other indefinite-lived intangible assets; foreign exchange rate fluctuations;
volatility in commodity, energy, and other input costs; volatility in the market
value of all or a portion of the commodity derivatives we use; increased
pension, labor and people-related expenses; an inability to remediate the
material weaknesses in our internal control over financial reporting or
additional material weaknesses or other deficiencies in the future or the
failure to maintain an effective system of internal controls; volatility of
capital markets and other macroeconomic factors. However, as the COVID-19
situation is unprecedented and continuously evolving, the potential impacts to
our risk factors that are further described in our Annual Report on Form 10-K
for the year ended December 28, 2019, remain uncertain.
Item 9.01. Financial Statements and Exhibits.
(d) The following exhibit is furnished with this Current Report on Form 8-K.
   Exhibit No.            Description
       99.1                 The Kraft Heinz Company Press Release, dated April 6, 2020.
                          The cover page of The Kraft Heinz Company's Current Report on Form 8-K
       104                dated April 6, 2020, formatted in inline XBRL.



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