Just when you thought there wasn’t enough junk food available for you to consume two multiple national companies, who are renowned for producing processed crap, have merged together. Kraft and Heinz have now become (you guessed it) the Kraft Heinz company, who are are now the worlds fifth largest food and drink company. Plutocrat Warren Buffet bought Kraft for around $40 billion to merge with Heinz as a part of his Berkshire Hathaway conglomerate. Happy days- shareholders get some nice dividends, they are thrilled- no doubt about that.
What of the consumer and the impact this will have on the huge F&D market? Undoubtedly this will create a huge amount of choice. The UK market will become more familiar with an array of new freshly processed Kraft products such as Kool-Aid, Jell-O and Oscar Mayer Wieners, which will all undoubtedly contribute to a balanced and nutritious diet for our nations obese children. Oh joy of joys !!
On a serious note whilst consumer choice is a great thing in many ways does this country really need to be inundated with more fatty food to line the pockets of Heinz and Kraft executives? (particularly a certain Warren Buffet), who will be the only ones truly benefitting from this merger. From a business sense this makes total sense – Heinz is an American brand that is successful internationally. Kraft is also an American brand which has not taken off internationally. Kraft will get the expertise to sell its products better internationally by virtue of being attached to the name Heinz.
Yes, in an operational sense this could be a very fine match indeed. But did anyone even consider the amount of layoffs that might happen as a consequence of this? Already many people have lost jobs .The merger has angered union leaders like Julia Long from Unite “News of this merger is a bolt from the blue for our members at Heinz. They deserve better, and we will be fighting for a better deal for them.”
Although this merger is in its early stages it seems to me that the only people truly benefitting so far are the people at the top. Meanwhile, employees and the sensitive obesity issue that is growing in the UK will feel the ripple effects.