Posted by Mark J. Miller on March 25, 2015 10:44 AM
Warren Buffett can now tuck into a nice big bowl of Kraft Mac & Cheese and not feel like a traitor.
The Berkshire Hathaway-backed H.J. Heinz company today announced it's merging with Kraft Foods Group to create The Kraft Heinz Co., forming the third-largest food company in North America and the fifth-largest on the planet with combined revenue of $28 billion.
The Wall Street Journal estimates the transaction is worth at least $45 billion, calling it "one of the largest deals involving a private equity company on record."
“This is my kind of transaction, uniting two world-class organizations and delivering shareholder value,” Berkshire Hathaway Chairman and CEO Warren Buffett said in a press release. “I’m excited by the opportunities for what this new combined organization will achieve.”Continue reading...
Posted by Shirley Brady on March 25, 2015 07:27 AM
Heinz announced it's buying Kraft Foods to form The Kraft Heinz Company and create North America's third-biggest food company and the world's fifth-biggest food giant.
From the press release:
The combination of these iconic food companies joins together two portfolios of beloved brands, including Heinz, Kraft, Oscar Mayer, Ore-Ida and Philadelphia. Together the new company will have eight $1+ billion brands and five brands between $500 million and $1 billion. The complementary nature of the two brand portfolios presents substantial opportunity for synergies, which will result in increased investments in marketing and innovation.
Warren Buffett, Chairman and CEO of Berkshire Hathaway said, "I am delighted to play a part in bringing these two winning companies and their iconic brands together. This is my kind of transaction, uniting two world-class organizations and delivering shareholder value. I'm excited by the opportunities for what this new combined organization will achieve."Continue reading...
Posted by Dale Buss on March 17, 2015 09:09 PM
As Kraft Foods' new CEO John Cahill commented on a quarterly earnings call last month, times are tough for the consumer packaged goods giant—and that was before the company voluntarily recalled 242,000 cases or 6.5 million individual boxes of Kraft Macaroni and Cheese today, or fell out with dietitians over a "Kids Eat Right" logo on Kraft Singles.
"Our brands can be found in 98% of the United States and Canadian households. They are some of the most well-recognized in our markets, if not around the world. Yet Kraft Foods hasn't gained share as a company for some time," Cahill told analysts on last month's earnings call. "And in 2014, we did not grow share in any individual category. We merely held flat at 60% of our US businesses, and lost share in the other 40%."
So if you’re Cahill or a fellow Kraft Foods executive these days, you realize that your competition isn't just other CPG giants such as ConAgra or Unilever or even Mondelez International, the Kraft spinoff where you’ve probably got several former colleagues.Continue reading...
Posted by Mark J. Miller on November 11, 2014 01:48 PM
There is no shortage of U.S.-based brands honoring America's troops this Veterans Day. One particular badge of honor: making it onto the annual Military Friendly Employers List from MilitaryFirst.com, an accolade that Whirlpool notes in a press release today.
Last year, the company was named the official appliance sponsor to Homes For Our Troops, a U.S. non-profit organization that assists veterans who were severely injured in combat. In addition, Whirlpool has bolstered its commitment to hiring and representing veterans in its own employee demographics.Continue reading...
Posted by Dale Buss on September 16, 2014 09:07 AM
AB InBev explores financing to buy SABMiller.
Apple sets sights on TV as regulators set sights on Apple Pay and fans spot the iPhone 6's hidden bulge—while U2 iTunes freebie is defended despite backlash.
McDonald's gives away coffee for the next two weeks and brings McCafe to Canadian grocers as it considers expanding its build-your-own-burger test.
NFL faces crisis as domestic violence issue ambushes Cover Girl campaign and Radisson Hotels pulls Vikings sponsorship after Adrian Peterson allegations, but teams keep fans.
Sears secures $400-million lifeline via CEO Lampert's hedge fund.
MORE BRAND NEWS
Alibaba ups IPO share price to $66-to-$68 range.
Amazon founder Jeff Bezos partners with Boeing and Lockheed on rocket engine.
America Movil said to seek AT&T bid for $17.5 billion of assets in Mexico.
AstraZeneca finds partner in Eli Lilly for experimental Alzheimer's drug.
Burger King notches North American same-store sales increase.Continue reading...
Posted by Barry Silverstein on October 16, 2013 03:02 PM
In little more than a year, some retail shelves may actually be able to identify consumers who are most likely to purchase certain snacks, thanks to Mondelez International. The $35 billion global foods giant, which spun off from Kraft Foods just over a year ago with a name intended to evoke "delicious world," markets such snack brands as Cadbury, Certs, Oreo, and Trident.
In 2015, the company plans to introduce "smart shelves" with sensors designed to detect the age and sex of consumers. Then, advanced analytics will associate the right type of snack product with each consumer, and a video display will target consumers with appropriate ads and promotions.
Mondelez wants to place its smart shelves as close as possible to the point of sale—right near the checkout aisles to track and possibly encourage last-minute impulse buys. Mark Dajani, the CIO of Mondelez, told the Wall Street Journal, "When people walk by, it's a missed opportunity. We must know how the consumer behaves in the store. ...Knowing that a consumer is showing interest in the product gives us the opportunity to engage with them in real-time."Continue reading...
Posted by Dale Buss on September 24, 2013 09:36 AM
Chrysler files for IPO in valuation feud with UAW as company chokes on launch of new Jeep Cherokee.
Disney World and Disneyland cut line-cutting privileges for disabled after abuse.
Arby's names new CMO.
ADM plans to move top execs from Illinois plains to larger city.
Bugatti plans to sell handbags to broaden appeal of luxury car brand.
China will unblock Facebook, Twitter and the New York Times inside Shanghai Free Trade Zone.
Citigroup cuts mortgage jobs as refinancing boom wanes.
Domino's upgrades online ordering.
Foxconn deals with large-scale worker fight on China campus.
Kraft Foods leverages Corn Nuts content in display ads.
Macy's campaign explains localization strategy.Continue reading...
Posted by Dale Buss on June 25, 2013 06:33 PM
The year-old split between Kraft Foods and Mondelez International is working out about as financial and marketing engineers had promised, with the latter attacking emerging global snack markets with zest and Kraft trying to squeeze everything it can out of more mature North American markets.
The latest evidence that the split strategy is taking hold as planned: Kraft Foods is boosting US marketing spending significantly and has retained traction as one of the biggest advertisers in the American market, while Mondelez's spending on US advertising has dwindled—even though Mondelez retains domestic control of iconic brands such as Oreo.
Kraft Foods plans to pump more than $100 million into brand-building in the second half of this year as it aims to differentiate its classic brands in commodity categories such as cheese from private-label players, while also launching new US products such as Fresh Take, a meal kit that combines fresh cheeses, spices and breadcrumbs, according to Advertising Age.Continue reading...