Why Kraft Heinz Is Warren Buffett’s Worst Bet

Nine years after its megamerger, food behemoth Kraft Heinz is facing challenging times amid slumping sales, high inflation, a shift away from processed foods and stiff competition. Despite $27 billion in annual sales, the company must keep innovating if it wants to compete with private-label brands such as Costco's Kirkland or Wegmans' various brands which are quickly stealing market share as recent generations value lower prices over loyalty. With a new CEO, a renewed focus on core brands, and Brazilian private equity company 3G out of the picture, majority stakeholder Warren Buffett's Berkshire Hathaway is betting it can make a comeback. But experts say it could be difficult. Chapters: 0:00 Introduction 2:01 Chapter 1. A bad deal 7:40 Chapter 2. Turn around? 11:37 Chapter 3. Industry Risks Produced and shot by: Natalie Rice Edited by: Evan Lee Miller Animation by: Christina Locopo, Jason Reginato Senior Managing Producer: Tala Hadavi Additional Sources: FactSet, Reuters Additional Footage: Getty, AP Photos, The Kraft Heinz Company
Thu, 11 Apr 2024 16:00:43 GMT