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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.[2] 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.[3][4] It is responsible for over 25 brands including Kraft, Heinz, Planters, Grey Poupon, Oscar Mayer and more, of which eight have total individual sales of over $1 billion.

The Kraft Heinz Company
Public company
Traded as
IndustryFood processing
Founded1869
HeadquartersChicago, Illinois and Pittsburgh, Pennsylvania, US
Area served
Worldwide
Key people
Alex Behring (Chairman)
John Cahill (Vice chairman)
Bernardo Hees (CEO)
ProductsBeverages
Cheese
Convenience foods
Dairy foods
Snack foods
RevenueDecrease US$26.232 billion (2017)[1]
Increase US$6.773 billion (2017)[1]
Increase US$10.999 billion (2017)[1]
Total assetsDecrease US$120.232 billion (2017)[1]
Total equityIncrease US$66.034 billion (2017)[1]
Number of employees
~39,000 (2017)[1]
DivisionsKraft Foods
Heinz
Websitewww.kraftheinzcompany.com

In 2018, Kraft Heinz launched Springboard Brands, a business focused on growing organic, natural, and "super-premium" food brands.[5][6] Kraft Heinz ranked No. 114 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.[7]

Contents

MergerEdit

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.[2][8] The new Kraft Heinz Company became the world's fifth-largest food and beverage company[9] and the third-largest in the United States.[2] The company is headquartered in Chicago at the Aon Center with additional offices in Pittsburgh at PPG Place.[10] The companies completed the merger on July 2, 2015.[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.[12]

The merger did not affect the naming rights to Heinz Field, home of the Pittsburgh Steelers.[13]

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.[14] Unilever declined the initial proposal.[15] The takeover was subsequently abandoned on 19 February soon after UK Prime Minister Theresa May had ordered a scrutiny of the deal.[14]

FinanceEdit

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.[16]

Year Revenue
in mil. USD-$
Net income
in mil. USD-$
Price per Share
in USD-$
Employees
2010 17,797 3,534
2011 18,576 1,775
2012 18,271 1,637
2013 11,529 1,013
2014 10,922 −63
2015 18,338 −266 77.01 42,000
2016 26,487 3,452 81.91 41,000
2017 26,232 10,999 61.75 39,000

See alsoEdit

ReferencesEdit

  1. ^ a b c d e f "The Kraft Heinz Company 2017 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. February 2018.
  2. ^ a b c "Kraft Foods to merge with Heinz". BBC News. 25 March 2015. Retrieved 9 October 2016.
  3. ^ "The Kraft Heinz Company". www.kraftheinzcompany.com. Retrieved 15 September 2018.
  4. ^ Feeney, Nolan. "Kraft-Heinz Merge to Become World's 5th Largest Food Company". Time. Retrieved 27 October 2018.
  5. ^ "Kraft Heinz is going after small organic food brands just as Whole Foods abandons them". Business Insider. Retrieved 18 September 2018.
  6. ^ "Springboard - Shaping the Future of the Food and Beverage Industry". Springboard. Retrieved 18 September 2018.
  7. ^ "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved 2018-11-10.
  8. ^ "H.J. Heinz, Kraft Foods to merge". Institute of Food Technologists. 25 March 2015. Retrieved 28 March 2015.
  9. ^ Nolan Feeney (25 March 2015). "Kraft and Heinz Merge to Become World's 5th-Largest Food Company". TIME magazine. Retrieved 9 October 2016.
  10. ^ "Kraft-Heinz Company FactSheet" (PDF). www.kraftheinzcompany.com. Retrieved 17 February 2017.
  11. ^ "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.
  12. ^ "1. Meet the new Kraft Heinz Company". Fortune. 25 March 2015. Retrieved 9 October 2016.
  13. ^ Teresa F. Lindeman (25 March 2015). "Officials: Heinz Field name will not change with merger deal". Pittsburgh Post-Gazette. Retrieved 9 October 2016.
  14. ^ a b "Kraft Heinz abandons £115bn Unilever mega-deal". The Telegraph. Retrieved 2017-02-19.
  15. ^ Anne Steele Chaudhuri saabira (17 February 2017). "Kraft Makes $143 Billion Merger Bid for Unilever". The Wall Street Journal. Retrieved 17 February 2017.
  16. ^ "Kraft Heinz - 3 Year Stock Price History | KHC". www.macrotrends.net. Retrieved 2018-10-27.

Further readingEdit

External linksEdit