Kraft Heinz

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The Kraft Heinz Company
Public
Traded as
Industry Food processing
Predecessors Heinz
Kraft Foods Group
Founded July 2, 2015; 20 months ago (2015-07-02)[1]
Headquarters Chicago, Illinois and Pittsburgh, Pennsylvania, US
Area served
 Worldwide
Key people
 Alex Behring (Chairman)
John Cahill (Vice chairman)
Bernardo Hees (CEO)
Products Beverages
Cheese
Convenience foods
Dairy foods
Snack foods
Revenue Increase US$26.48 billion (2016)[2]
Increase US$6.142 billion (2016)[2]
Increase US$3.632 billion (2016)[2]
Total assets Decrease US$120.48 billion (2016)[2]
Total equity Decrease US$57.35 billion (2016)[2]
Owner Berkshire Hathaway (26.8%)
3G Capital (24.2%)
(remaining 49.0% Publicly-owned)[3]
Number of employees
 42,000 (2016)[2]
Divisions Kraft
Heinz
Website www.kraftheinzcompany.com

The Kraft Heinz Company is an American worldwide food company formed by the merger of Kraft Foods Group and Heinz in 2015.[4] The merger was backed by 3G Capital and Berkshire Hathaway, which invested US$10 billion in the deal, making Kraft Heinz worth about US$46 billion.[5][6] In 2015 the Kraft Heinz Company had 13 different brands with $500 million or more each in annual sales.[7]

Merger[edit]

The merger was agreed by the boards of both companies, with approval by shareholders and regulatory authorities.[4][7] The new company became the world's fifth-largest food and beverage company[8] and the third-largest in the US.[4] The company is headquartered in both Pittsburgh and Chicago.[9] The companies completed the merger on July 2, 2015.[1]

Under the merger, Kraft's shareholders received 49% of shares in the combined company, plus a one-time dividend of US$16.50 per share.[10] Fortune reports that sluggish growth for Kraft in the US market is due to consumers turning to natural and organic ingredients.[11]

Alex Behring, 3G Capital's managing partner, is the chairman of the new company; Bernardo Hees, also a partner of 3G Capital and Heinz's chief executive officer (CEO), is the CEO of the new company; and John Cahill, Kraft's CEO, is the vice chairman of the new company.[11]

The merger did not affect the naming rights to Heinz Field, home of the Pittsburgh Steelers.[12]

On February 17, 2017, it was reported that Kraft Heinz Co. had made a $143 billion approach to take over the British-Dutch multinational Unilever, a significantly larger competitor with 126,000 more employees and £24bn larger revenue than Kraft Heinz.[13] Unilever declined the initial proposal.[14] The take over was subsequently abandoned on 19 February soon after UK Prime Minister Theresa May had ordered a scrutiny of the deal.[13]

See also[edit]

References[edit]

  1. ^ a b "The Kraft Heinz Company Announces Successful Completion of the Merger between Kraft Foods Group and H.J. Heinz Holding Corporation" (PDF). The Kraft Heinz Company. 2 July 2015. Archived from the original (PDF) on 14 July 2015. Retrieved 23 January 2015. 
  2. ^ a b c d e f "Financial Results - Kraft Heinz Co". Google Finance. Retrieved December 25, 2015. 
  3. ^ "Kraft Heinz Company Proxy Statement, March 3, 2016". The Kraft Heinz Company. 3 March 2016. Retrieved 14 November 2016. 
  4. ^ a b c "Kraft Foods to merge with Heinz". BBC News. 25 March 2015. Retrieved 9 October 2016. 
  5. ^ "Kraft Foods to merge with ketchup maker Heinz". Reuters. March 25, 2015. Retrieved March 25, 2015. 
  6. ^ "3G Capital, Berkshire to Buy Kraft Foods, Merge It With Heinz". Bloomberg. March 25, 2015. Retrieved March 25, 2015. 
  7. ^ a b "H.J. Heinz, Kraft Foods to merge". Institute of Food Technologists. 25 March 2015. Retrieved 28 March 2015. 
  8. ^ Nolan Feeney (25 March 2015). "Kraft and Heinz Merge to Become World's 5th-Largest Food Company". TIME magazine. Retrieved 9 October 2016. 
  9. ^ KraftHeinzCompany_FactSheet.pdf: www.kraftheinzcompany.com/KraftHeinzCompany_FactSheet.pdf, accessdate: February 17, 2017
  10. ^ Giammona, Craig. "Kraft Foods, Heinz to merge in deal backed by Warren Buffett, Tim Hortons owner". Financial Post. Postmedia Network. Retrieved 27 March 2015. 
  11. ^ a b "1. Meet the new Kraft Heinz Company.". Fortune. 25 March 2015. Retrieved 9 October 2016. 
  12. ^ Teresa F. Lindeman (25 March 2015). "Officials: Heinz Field name will not change with merger deal". Pittsburgh Post-Gazette. Retrieved 9 October 2016. 
  13. ^ a b "Kraft Heinz abandons £115bn Unilever mega-deal". The Telegraph. Retrieved 2017-02-19. 
  14. ^ Anne Steele Chaudhuri saabira (17 February 2017). "Kraft Makes $143 Billion Merger Bid for Unilever". The Wall Street Journal. Retrieved 17 February 2017. 

Further reading[edit]

External links[edit]

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