Manufacturing News / Mergers and Acquisitions News

Kraft Heinz replaces CEO after $15B writedown

By James Fontanella-Khan and Alistair Gray, for Financial Times

Apr 22, 2019

Kraft Heinz’s chief executive is leaving the food company after a profit warning that shook the global consumer goods industry.

Bernardo Hees will be replaced at the end of June by Miguel Patricio, an executive at the brewer Anheuser-Busch InBev, backed by the Brazilian investment group 3G Capital, which also controls Kraft Heinz.

The leadership change comes at a testing time for Kraft Heinz. The maker of Kraft processed cheese, Heinz tomato ketchup and HP Sauce took a $15 billion writedown in February due to a drop in the value of some of its biggest brands. The Chicago-based company also revealed it had received a subpoena from the US Securities and Exchange Commission and cut its dividend by one-third.

Following news of the multi-billion-dollar writedown Warren Buffett, whose Berkshire Hathaway has a large stake, admitted for the first time that he had overpaid for Kraft’s merger with Heinz.

Read the full story, "Kraft Heinz replaces CEO after $15B writedown" at www.ft.com.

See also: 
"Kraft Heinz gets new CEO" from our sister publication Food Processing
"Kraft Heinz fined $26K by OSHA for safety violations"  
"Manufacturing issue' leads to shutdown of Kraft string cheese line"

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