Kraft Heinz Steps Up Product Portfolio Transformation Via NotCo JV

Kraft Heinz Co KHC has formed a joint venture (JV) with food tech start-up TheNotCompany Inc (NotCo). The financial terms were not disclosed.
The JV will leverage NotCo's artificial intelligence (AI) solutions and Kraft Heinz's brand portfolio and scale to develop plant-based versions of co-branded products.
The JV will operate under the control of Kraft Heinz as The Kraft Heinz Not Company LLC. Lucho Lopez-May, who is currently CEO, North America of NotCo, will become CEO of the JV.
NotCo has developed plant-based replacements for animal products with simpler ingredients that don't sacrifice taste, functionality, or consumption experience.
The JV will be headquartered in Chicago with research and development facilities in San Francisco.
Outlook: Kraft Heinz also announced that it is increasing its long-term growth targets. It raised organic net sales growth outlook from 1% – 2% to 2% – 3%, Adjusted EPS growth from 4% – 6% to 6% – 8%.
The company reiterated its expectation to deliver 2022 Adjusted EBITDA of $5.8 billion - $6.0 billion.
Price Action: KHC shares are trading higher by 3.37% at $39.76 on the last check Tuesday.