Once combined, the Kraft Heinz Company will be one of the largest food and beverage conglomerates in the world, with nearly $28 billion in annual sales, and is expected to have a market value of more than $80 billion (see New York Times for more).
The interesting thing about this is that both Kraft and Heinz are already owned by a Brazilian private investment group.
Contrary to popular view, it's not like two iconic American companies have decided to marry. That ship sailed long ago. These two companies are already owned and operated by entities outside of the U.S. In Brazil.
So who owns Heinz-Kraft?
In 2010, 3G Capital acquired the stock of Burger King for $24.00 per share, or $4.0 billion, including the assumption of Burger King's outstanding debt. The Burger chain was then combined with Tim Hortons. The merger has been good for shareholders.
What the firm does is acquire control of companies then combine them as appropriate. In this case, consider this:
"Combining our two businesses, we’ll create the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world," Alex Behring, the managing partner of 3G, who will be chairman of Kraft Heinz, said on a call with investors. "The company will enjoy significantly enhanced scale in its key North American market, not only at retail but also in the food service channel." - from the New York TimesFortune Magazine says 3G isn't known for a gentle, indulgent management style. Which should surprise no one.
From a food supply chain perspective, the F&B industry gets more and more interesting. It's less and less "iconic family restaurant" themed and more and more like a game of Monopoly.