Kraft Heinz

The Kraft Heinz Company
Public
Traded as
Industry Food processing
Founded July 2, 2015 (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 Decrease US$26.232 billion (2017)[2]
Increase US$6.773 billion (2017)[2]
Increase US$10.999 billion (2017)[2]
Total assets Decrease US$120.232 billion (2017)[2]
Total equity Increase US$66.034 billion (2017)[2]
Number of employees
 ~39,000 (2017)[2]
Divisions Kraft Foods
Heinz
Website www.kraftheinzcompany.com

The Kraft Heinz Company (Kraft Heinz) is an American food company formed by the merger of Kraft Foods and Heinz based in Chicago, Illinois and Pittsburgh, Pennsylvania.[3] Kraft Heinz is the third-largest food and beverage company in North America and the fifth-largest in the world with $26.1 billion in annual sales.[4] With over 25 brands including Kraft, Heinz, Planters, Grey Poupon, Oscar Meyer and more, 8 have total sales of over $1 billion each.

In 2018, Kraft Heinz launched Springboard Brands, a platform focused on growing organic, natural, and "super-premium" food brands.[5][6]

Merger

The merger was agreed by the boards of both companies, with approval by shareholders (at the shareholders meeting) and regulatory authorities.[3][7] The new company became the world's fifth-largest food and beverage company[8] and the third-largest in the United States.[3] 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 reported 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 takeover was subsequently abandoned on 19 February soon after UK Prime Minister Theresa May had ordered a scrutiny of the deal.[13]

See also

References

  1. 1 2 "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. 1 2 3 4 5 6 "The Kraft Heinz Company 2017 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. February 2018.
  3. 1 2 3 "Kraft Foods to merge with Heinz". BBC News. 25 March 2015. Retrieved 9 October 2016.
  4. ↑ "The Kraft Heinz Company". www.kraftheinzcompany.com. Retrieved 15 September 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. ↑ "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. 1 2 "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. 1 2 "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

  • Kim, Susanna (March 25, 2015). "How the New Kraft Heinz Co. Is About to Take Over Your Kitchen". ABC News. Retrieved 26 March 2015.
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