Heinz-Kraft unification may lead to challenges for the two

Published By : 27 Mar 2015 | Published By : QYRESEARCH

In an iconic food industry merger, H.J Heinz Co and Kraft Foods came together to form a $28 billion company in revenue. The Berkshire Hathaway chairman Warren Buffet was in news this week on announcing the unification of two leading organizations in the world. Warren Buffet said he was delighted to be a part of the merger.

Another name associated with these vintage food companies is Nelson Peltz, who fought a battle in Heinz in the year 2006 to have a position on the board before he used some of his free time for a change at Kraft.

The merger is expected to be promising for employees and communities across Pittsburgh and Chicago, the food industry and investors may be looking for something else. The unification has stirred up the whole industry; most companies are trying to look over to be fast in the race and not be swallowed by outside competition.

The merger has raised the interest of large corporations, investors all around the world. The merger seems opportunistic for big investors in the packaged food industry which earlier looked expired. It is all about looking investment opportunities, said an activist investor. A consultant both at Heinz and Kraft brought out the Heinz playbook of shifting sales out of North America. The consultant further added investment companies and shareholders have made money using no budgeting; it’s all about unlocking the hidden potential. The Heinz-Kraft merger may be iconic, but it may not be part of a regular routine for most.
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