- Kraft Heinz Co (NASDAQ: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.
