The Kraft Heinz Company is an American food company formed by the merger of Kraft Foods and Heinz based in Chicago, Illinois and Pittsburgh, Pennsylvania. 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 2017. With over 25 brands including Kraft, Heinz, Planters, Grey Poupon, Oscar Mayer and more, eight have total individual sales of over $1 billion.
|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
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 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 Chicago at the Aon Center and Pittsburgh at PPG Place. 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.
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.
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- Kim, Susanna (March 25, 2015). "How the New Kraft Heinz Co. Is About to Take Over Your Kitchen". ABC News. Retrieved 26 March 2015.