KHC · 10-Q · 2026Q2 · Full report

Environmental Regulatory Proceedings

Kraft Heinz Co · 2026-08-05 · Importance 37 · Surprise 42 · In source text

Since March 2024, Kraft Heinz has discussed alleged Clean Water Act violations at its Kendallville, Indiana facility with the U.S. Department of Justice, the U.S. Environmental Protection Agency, and the Indiana Department of Environmental Management. The company is subject to an EPA Administrative Order on Consent requiring a compliance plan, although it does not expect the matter to materially affect financial condition, results, or cash flows. In Brazil, the Goiás environmental authority SEMAD upheld an alleged Capivara stream pollution infraction in 2025, while a related civil penalty was overturned on appeal in April 2026 and a criminal complaint was filed in March 2026 against the company and two former plant employees.

Key facts

• Since March 2024 the Company has been engaged in discussions with the U.S. Department of Justice, U.S. EPA and Indiana Department of Environmental Management concerning alleged Clean Water Act violations at the Kendallville, Indiana facility and is subject to an Administrative Order on Consent requiring implementation of a compliance plan source
• A civil action brought by the local Public Prosecutor in September 2025 imposed a penalty in November 2025 which the appellate court overturned in April 2026 so the case must be retried in the court of first instance; a criminal complaint was filed in March 2026 against the Company and two former plant-level employees source
• Since September 2021 the Company has been involved in an administrative proceeding with SEMAD regarding alleged pollution in the Capivara stream related to a facility in Brazil; SEMAD issued first instance decision in March 2025 and second instance decision in September 2025 maintaining the infraction notice source

Impact estimates