KHC · 10-Q · 2026Q3 · Full report

Inflation and Tariff Impacts

Kraft Heinz Co · 2026-11-04 · Importance 26 · Surprise 24 · In source text

Kraft Heinz experienced lower supply-chain inflation during the nine months ended September 26, 2026, but expects inflationary pressures to increase in the fourth quarter of 2026, partly due to the Iran conflict. The company is using efficiency initiatives, pricing, alternative sourcing, and hedging to mitigate costs, while warning that timing differences may leave costs ahead of mitigation and pricing actions may hurt market share. U.S. tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were invalidated by the Supreme Court on February 20, 2026, although global tariffs under other statutory authorities remain in effect. On March 4, 2026, the Court of International Trade ordered refunds of IEEPA tariffs, but Kraft Heinz is not the Importer of Record for most imported raw materials, making any recovery dependent on suppliers and negotiated contracts, with timing and amount uncertain.

Key facts

• Kraft Heinz experienced lower supply-chain inflation in the nine months ended September 26, 2026, than in the prior-year period, but expects inflationary pressures to increase in Q4 2026 partly due to the Iran Conflict. source
• Kraft Heinz is using efficiency initiatives, pricing actions, alternative sourcing, and hedging strategies to mitigate inflation, but the timing of those measures may differ from when inflation costs are incurred and pricing actions have sometimes negatively affected market share. source
• Kraft Heinz experienced increased supply-chain inflation during 2025 due to U.S. tariff and trade policy actions. source
• The U.S. Supreme Court invalidated IEEPA tariffs on February 20, 2026, while new global tariffs initiated under different statutory authorities remain in effect. source
• On March 4, 2026, the Court of International Trade ordered the Trump Administration to begin refunding IEEPA tariffs; Kraft Heinz is not the Importer of Record for most raw materials sourced from outside the U.S., so recovery depends on suppliers and contractual outcomes and its timing and amount are uncertain. source
• Kraft Heinz Co experienced decreased commodity costs for cheese and dairy products, meats, coffee, sugar and other sweeteners, and eggs during the nine months ended September 26, 2026, while costs for edible oils, resins, plastics, and fruits and vegetables increased versus the prior-year period. source

Impact estimates