The Kraft Heinz Company is an American food company formed by the merger of Kraft Foods and Heinz in 2015. The merger was backed by 3G Capital and Berkshire Hathaway, which together invested US$46 billion in the deal, making Kraft Heinz worth about US$26 billion. In 2015, the Kraft Heinz Company had 13 different brands with $500 million or more each in annual sales.
|Founded||July 2, 2015|
|Headquarters||Chicago, Illinois and Pittsburgh, Pennsylvania, US|
Alex Behring (Chairman)|
John Cahill (Vice chairman)
Bernardo Hees (CEO)
|Revenue||US$26.232 billion (2017)|
|US$6.773 billion (2017)|
|US$10.999 billion (2017)|
|Total assets||US$120.232 billion (2017)|
|Total equity||US$66.034 billion (2017)|
Number of employees
The merger was agreed by the boards of both companies, with approval by shareholders (at the shareholders meeting) and regulatory authorities. The new company became the world's fifth-largest food and beverage company and the third-largest in the United States. The company is headquartered in both Pittsburgh and Chicago. The companies completed the merger on July 2, 2015.
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. Fortune reported that sluggish growth for Kraft in the US market is due to consumers turning to natural and organic ingredients.
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.
- "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.
- "The Kraft Heinz Company 2017 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. February 2018.
- "Kraft Foods to merge with Heinz". BBC News. 25 March 2015. Retrieved 9 October 2016.
- "Kraft Foods to merge with ketchup maker Heinz". Reuters. March 25, 2015. Retrieved March 25, 2015.
- "3G Capital, Berkshire to Buy Kraft Foods, Merge It With Heinz". Bloomberg. March 25, 2015. Retrieved March 25, 2015.
- "H.J. Heinz, Kraft Foods to merge". Institute of Food Technologists. 25 March 2015. Retrieved 28 March 2015.
- Nolan Feeney (25 March 2015). "Kraft and Heinz Merge to Become World's 5th-Largest Food Company". TIME magazine. Retrieved 9 October 2016.
- KraftHeinzCompany_FactSheet.pdf: www.kraftheinzcompany.com/KraftHeinzCompany_FactSheet.pdf, accessdate: February 17, 2017
- Giammona, Craig. "Kraft Foods, Heinz to merge in deal backed by Warren Buffett, Tim Hortons owner". Financial Post. Postmedia Network. Retrieved 27 March 2015.
- "1. Meet the new Kraft Heinz Company". Fortune. 25 March 2015. Retrieved 9 October 2016.
- Teresa F. Lindeman (25 March 2015). "Officials: Heinz Field name will not change with merger deal". Pittsburgh Post-Gazette. Retrieved 9 October 2016.
- "Kraft Heinz abandons £115bn Unilever mega-deal". The Telegraph. Retrieved 2017-02-19.
- Anne Steele Chaudhuri saabira (17 February 2017). "Kraft Makes $143 Billion Merger Bid for Unilever". The Wall Street Journal. Retrieved 17 February 2017.
- Kim, Susanna (March 25, 2015). "How the New Kraft Heinz Co. Is About to Take Over Your Kitchen". ABC News. Retrieved 26 March 2015.