The Kraft Heinz Company : A Successful Merger of Two Giants
The Kraft Heinz Company is an American worldwide food company formed by the merger of Kraft Foods and Heinz. Kraft Food is a worldwide food company based in America. The merger of Kraft Food and Heinz brought forth the Kraft Heinz Company. With 13 brands valued at 500 million USD or more, it is one of the biggest companies in food processing industry across the globe.
Headquarters of The Kraft Heinz Company are located in Chicago as well as Pittsburgh in the United States of America, while they serve truly global. These were the original headquarters of the two companies, and despite the merger, a certain level of independence has always been allowed in both the companies; it means, both the headquarters retain their significance, as do both the individual brands.
Board of Directors
Alex Behring- the co-founder of 3G Captail- one of the two major investors during the merger of Kraft Food and Heinz, is the present chairman of the board of directors. He was appointed the chairman in July 2015, prior to which he was the board chairman of the Heinz board. Mr. John T Cahill was appointed the Vice Chairman to Behring at the same time. Previously, he served as Chairman and CEO of the Kraft Foods Group.
Other directors on the board include Mr. Gregory Abel, Mr. Warren E Buffer, Ms Tracy Britt Cool, Ms Jeanne P Jackson, Mr Jorge Paulo Lemann, Mr. Mackey J McDonald, Mr. John C Pope, and Mr. Marcel Hermann Telles.
Bernando Hees is the present Chief Executive Office of the Kraft Heinz Company. He is an acclaimed economist and businessman. At the age of 46, his present yearly compensation as of 2015 financial year is around $5,368,038. He is the CEO of the company since July 2, 2015. Before that, he was CEO of Heinz company, from June 7, 2013. He also served as President and Chairman of the board for the same.
Earlier, he was the CEO of global food giants Burger King Corporation from October 2010 for almost two and a half years. For All America Latina Logistica S.A., he was the CEO for over five years from January 2005 to September 2010. He has spent major part of his career in leading business and economic roles for various big brands.
The Kraft Foods and Heinz Company both were doing well enough for themselves. Ever since the merger though, their stock offerings on NASDAQ have been performing above par. They have excellent growth which has doubled since June 2014. They now sit comfortable at a high of 84, while original issue was in the 40s only. The company has faced stiff competition due to growth of healthy and organic food companies but it has been able to retain heavy profits despite the industry moving majorly to the organic foods.
- The merger of the two companies was backed by two major investing firms- 3G Capital and Berkshire Hathaway. The merger made the Kraft Heinz Company the third largest in food and beverages company in USA. It became fifth overall in the world in terms of net worth. The listings of the company are public and traded as NASDAQ: KHC S&P 500 and NASDAQ-100 component.
- 13 brands of the company are valued at over 500 million USD each.
- Despite a merger- the individual companies have managed to retain their individual functioning and headquarters- both of which became official headquarters of the Kraft Heinz Company.
- The companies invested USD 10 million in the deal making the Kraft Heinz Company worth USD 46 billion.
The Kraft Foods and the Heinz company were much loved initially, and their combination just worked like wonders. Their NASDAQ offerings have soared ever since they combined into one big brand. The response to the products was initially slower than expected because of the competition in the form of natural and organic products.
There was a change in management in 2015, and this made plenty of new faces enter the market. The review of the products of the company hasn’t changed- in fact both the companies have gone from strength to strength elevating their products after coming under the common banner.