Kraft Heinz completes its Spain manufacturing site bolstering its consumer range
SPAIN – Kraft Heinz, an American multinational food company formed by the merger of Kraft Foods Group, Inc. and the H.J. Heinz Company, has completed its factory in La Rioja, Spain, as part of its €70m (US$76.12 million) investment.
The company indicated that the new site will boost production by 50% and aims to strengthen its position as one of Europe’s ‘most efficient’ facilities.
It will help Kraft Heinz meet increasing demand for its expanding range of Heinz sauces in Europe.
In addition, the Alfaro plant will process around 25,000 tons of locally grown tomatoes each year for the company’s Orlando brand.
A year and a half after breaking ground at the site in Alfaro, La Rioja, the new plant will also generate 39 new permanent jobs in the region.
Willem Brandt, President of The Kraft Heinz Company’s European and Pacific Developed Markets, said, “The expansion of our Alfaro factory marks an essential step in our journey to become Europe’s number one player in sauces, in and out of the home.
“With increased capacity and new, cutting-edge technology, we’ll be able to respond more readily to evolving culinary trends and tastes – including the demand for healthier versions of fan favourites, like Heinz mayonnaise.”
The investment forms part of a broader expansion strategy, which has resulted in the installation of new high-speed filling lines and a new pilot plant located at Kraft Heinz’s R&D centre in Nijmegen, the Netherlands.
Last year, the company announced plans to significantly increase its production capacity in Egypt, following a US$50 million expansion of its Cairo facility.
The Cairo plant, which has been operational since 1991 and serves as Kraft Heinz’s only factory in North Africa and the Middle East, is set to increase its export output by 65%.
Kraft Heinz is eyeing significant growth in a bid to tap into Africa’s growing market, particularly the tomato ketchup segment.
The tomato ketchup market in Africa is projected to generate US$3 billion in revenue in 2024, with an annual growth rate of 10.4% expected between 2024 and 2029.
The United States remains the largest revenue generator globally in this market, expected to contribute US$6.072 billion in 2024.
The global tomato ketchup market volume is anticipated to reach 1.45 billion kilograms by 2029, with a growth rate of 3.9% in 2025.
The company was also committed to investing in sustainable agricultural projects within Egypt, aligning with the Egyptian government’s initiative to reduce reliance on imports and bolster Egypt’s position as a regional manufacturing hub.
Despite facing a slight dip in overall revenue, reporting USUS$6.4 billion in the first quarter of 2024—a 1.2% decrease from the previous year—the company continues to see strong performance in North America.
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