The capital expenditure will help the company develop and ship products faster.

Kraft Heinz (KHC) told Reuters it will spend $3 billion to upgrade its factories in the United States, weeks after the company trimmed its business forecasts for the year on weak demand.

The company’s North America president, Pedro Navio, said the upgrades will help lower costs by making the plants more efficient, which in turn will help higher costs anticipated from President Donald Trump's tariffs.

It will also help develop and ship new products faster.

In its recent quarterly report, the ketchup and snacks brand slashed its full-year organic sales and profit forecasts and said it is closely monitoring tariffs and inflation and their impact on consumer behavior.

The company faces weak demand for four of its key business lines: Lunchables, Kraft Mac & Cheese, Capri Sun, and Oscar Mayer. Kraft Heinz is known for its popular Heinz ketchup, Kraft macaroni and cheese, and Philadelphia cream cheese.

The company's expansion, its largest in a decade, will create about 3,500 new construction jobs where the plants are located, Navio said.

On Stocktwits, retail sentiment for Kraft Heinz jumped to 'extremely bullish' from 'neutral' the previous day.

"They are adding new lines and expanding!!! This is great news!" a user said.

Mars, the maker of M&Ms and various pet food products, recently opened a new facility in Lewisburg, Ohio, as part of a $6-billion capacity expansion project in the U.S.

At the same time, Budweiser brewer AB InBev (BUD) has set aside $300 million to expand production in the country.

Kraft Heinz stock is down 11.5% this year.

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