The Kraft Heinz Company (KHC) is an American food company formed by the merger of Kraft Foods and Heinz based in Chicago, Illinois. Kraft Heinz is the third-largest food and beverage company in North America and the fifth-largest in the world with $26.2 billion in annual sales as of 2018. In addition to Kraft and Heinz, 23 additional brands are included in the company's profile from Planters, Grey Poupon, Oscar Mayer and more, of which eight have total individual sales of over $1 billion.
|Founded||July 2, 2015|
|Alex Behring (Chairman)|
John Cahill (Vice chairman)
Miguel Patricio (CEO)
|Revenue||$26,268 billion (2018)|
|$10,220 billion (2018)|
|$10,192 billion (2018)|
|Total assets||$103,461 billion (2018)|
|Total equity||$51,775 billion (2018)|
Number of employees
|Website||The Kraft Heinz Company|
|Footnotes / references|
In 2018, Kraft Heinz launched Springboard Brands, a business focused on growing organic, natural, and "super-premium" food brands. Kraft Heinz ranked No. 114 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.
The merger of Kraft Foods and H.J. Heinz was agreed by the boards of both companies, with approval by shareholders and regulatory authorities in early 2015. The new Kraft Heinz Company became the world's fifth-largest food and beverage company and the third-largest in the United States. The company is co-headquartered in Chicago at the Aon Center and in Pittsburgh at PPG Place. The companies completed the merger on July 2, 2015.
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.
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. Unilever declined the initial proposal. The takeover was subsequently abandoned on 19 February soon after UK Prime Minister Theresa May had ordered a scrutiny of the deal.
For the fiscal year 2017, Kraft Heinz reported earnings of US$11.0 billion, with an annual revenue of US$26.2 billion, a decline of 0.6% over the previous fiscal cycle. Kraft Heinz's shares traded at over $61 per share, and its market capitalization was valued at over US$136 billion in September 2018.
In February 2019, shares in Kraft Heinz fell to a record low of under $35, after the company reported a $10.2bn loss for the previous year.
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On February 21, 2019, Kraft Heinz reported that they received a Securities and Exchange Commission (SEC) subponea in October that aimed to look into the company's accounting policies and internal controls. Kraft Heinz also announced that they slashed their dividend from 62.5 cents a share to 40 cents. The company also announced a goodwill impairment charge that wrote down the value of the company's Kraft and Oscar Mayer brands of $15.4 billion in the fourth quarter, which resulted in a net loss of $12.61 billion. The all-resulting news made the company's stock crash more than 20% in after-hours trading. The stock plunge resulted in Berkshire Hathaway, the largest stockowner, a write down of $3 billion and a stock value loss of $4.3 billion just a day before Berkshire Hathaway's quarterly earnings and annual report to investors.
- "The Kraft Heinz Company 2018 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. June 2019.
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- Nolan Feeney (25 March 2015). "Kraft and Heinz Merge to Become World's 5th-Largest Food Company". TIME magazine. Retrieved 9 October 2016.
- "Kraft-Heinz Company FactSheet" (PDF). www.kraftheinzcompany.com. Retrieved 17 February 2017.
- "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.
- Lorenzetti, Laura (2015-03-25). "Kraft, Heinz merge, and Facebook hosts a conference — 5 things to know today". Fortune. Retrieved 2016-10-09.
- Lindeman, Teresa F. (25 March 2015). "Officials: Heinz Field name will not change with merger deal". Pittsburgh Post-Gazette. Retrieved 9 October 2016.
- Armstrong, Ashley (2017-02-19). "Kraft Heinz abandons £115bn Unilever mega-deal". The Telegraph. Retrieved 2017-02-19.
- Chaudhuri, Saabira; Gasparro, Annie; Steele, Anne (2017-02-17). "Kraft's $143 Billion Bid for Unilever Highlights Squeeze in Consumer Goods". Wall Street Journal. ISSN 0099-9660. Retrieved 2017-02-17.
- "Kraft Heinz - 3 Year Stock Price History | KHC". MarcoTrends. Retrieved 2018-10-27.
- "Kraft Heinz shares fall as appetites wane". BBC News. 22 February 2019. Retrieved 22 February 2019.
- LaVito, Angelica; Wang, Christine (2019-02-21). "Kraft Heinz slashes dividend, discloses SEC subpoena". CNBC. Retrieved 2019-02-23.
- Wattles, Jackie (2019-02-21). "Kraft Heinz posts huge loss, slashes dividend and reveals SEC investigation". CNN. Retrieved 2019-02-23.
- Imbert, Fred (2019-02-23). "Berkshire Hathaway battered by Kraft-Heinz woes, posting a Q4 loss and a $3 billion writedown". CNBC. Retrieved 2019-02-23.
- Franck, Thomas (2019-02-22). "Buffett's Berkshire Hathaway loses $4.3 billion on Kraft Heinz plunge". CNBC. Retrieved 2019-02-23.
- Susanna, Kim (2015-03-25). "How the New Kraft Heinz Co. Is About to Take Over Your Kitchen". ABC News. Retrieved 2015-03-26.