The firm also lowered its price target to $52 from $58.
Kraft Heinz is facing increased competition from generic brands. And while Deutsche Bank's channel checks show that the company is still holding firm against the competition, generic brands are being sold in ever more locations.
"Although our analysis shows Kraft Heinz is, in fact, improving its sequential distribution, velocity, and share trends in U.S.-tracked channels relative to its larger-branded competition in aggregate, our analysis also shows store brands continue to increase distribution points and take share in the majority of Kraft Heinz's largest categories, all while the company has increased its promotional activity and further reduced price gaps," wrote Deutsche Bank analyst Rob Dickerson.
Despite the headwinds, Deutsche Bank said it believes the company is taking the appropriate steps to combat these incursions, but the path forward isn't so clear.
As a result, the firm lowered its 2019 earnings estimate to $3.65 a share from its previous view of $3.75. Wall Street has a consensus estimate of $3.69 a share for the year.