KHC · 10-Q · 2026Q2 · Full report

Commodity Cost Trends

Kraft Heinz Co · 2026-08-05 · Importance 31 · Surprise 32

Kraft Heinz purchases substantial quantities of dairy products, meats, sugar and sweeteners, coffee, edible oils, tomatoes, wheat products, fruits and vegetables, eggs, and packaging materials including plastics, cardboard, glass, paper, and metal. During the six months ended June 27, 2026, costs decreased for cheese and dairy products, meats, coffee, sugar and sweeteners, and eggs, while costs increased for edible oils, fruits and vegetables, and wheat products. The company manages raw-material volatility through pricing, commodity hedging, and other risk-management strategies, but does not fully hedge its exposure, so commodity costs may not immediately track market prices.

Key facts

• Notional amount of commodity derivative contracts outstanding at June 27, 2026: $1,167 million source
• Kraft Heinz does not fully hedge against changes in commodity prices and uses a range of commodity hedging techniques but hedging strategies may not protect from increases in specific raw material costs. source
• During the six months ended June 27, 2026 Kraft Heinz experienced decreased commodity costs for cheese and dairy products, meats, coffee, sugar and other sweeteners, and eggs. source
• During the six months ended June 27, 2026 commodity costs for edible oils, fruits and vegetables, and wheat products increased. source