Food Engineering logo
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • TOPICS
  • EXCLUSIVES
  • MEDIA
  • FOOD MASTER
  • EVENTS
  • RESOURCES
  • EMAGAZINE
  • SIGN UP!
cart
facebook twitter linkedin youtube
  • NEWS
  • Latest Headlines
  • Manufacturing News
  • People & Industry News
  • Plant Openings
  • Recalls
  • Regulatory Watch
  • Supplier News
  • PRODUCTS
  • New Plant Products
  • New Retail Products
  • TOPICS
  • Alternative Protein
  • Automation
  • Cannabis
  • Cleaning | Sanitation
  • Fabulous Food Plants
  • Food Safety
  • Maintenance Strategies
  • OEE
  • Packaging
  • Sustainability
  • More
  • EXCLUSIVES
  • Plant Construction Survey
  • Plant of the Year
  • Sustainable Plant of the Year
  • State of Food Manufacturing
  • Top 100 Food & Beverage Companies
  • MEDIA
  • Podcasts
  • Videos
  • Webinars
  • White Papers
  • EVENTS
  • Food Automation & Manufacturing Symposium and Expo
  • Industry Events
  • RESOURCES
  • eNewsletter
  • Custom Content & Marketing Services
  • FE Store
  • Government Links
  • Industry Associations
  • Market Research
  • Classified Ads
  • EMAGAZINE
  • eMagazine
  • Archive Issue
  • Advertise
Food Engineering logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Food Engineering logo
  • NEWS
    • Latest Headlines
    • Manufacturing News
    • People & Industry News
    • Plant Openings
    • Recalls
    • Regulatory Watch
    • Supplier News
  • PRODUCTS
    • New Plant Products
    • New Retail Products
  • TOPICS
    • Alternative Protein
    • Automation
    • Cannabis
    • Cleaning | Sanitation
    • Fabulous Food Plants
    • Food Safety
    • Maintenance Strategies
    • OEE
    • Packaging
    • Sustainability
    • More
  • EXCLUSIVES
    • Plant Construction Survey
    • Plant of the Year
    • Sustainable Plant of the Year
    • State of Food Manufacturing
    • Top 100 Food & Beverage Companies
  • MEDIA
    • Podcasts
    • Videos
    • Webinars
    • White Papers
  • FOOD MASTER
  • EVENTS
    • Food Automation & Manufacturing Symposium and Expo
    • Industry Events
  • RESOURCES
    • eNewsletter
    • Custom Content & Marketing Services
    • FE Store
    • Government Links
    • Industry Associations
    • Market Research
    • Classified Ads
  • EMAGAZINE
    • eMagazine
    • Archive Issue
    • Advertise
  • SIGN UP!
Manufacturing News

TECH FLASH

Heinz and Kraft merge to create global food giant

Heinz shareholders will own a 51 percent stake in the new company, per the agreement valued at $36 billion.

By Jeremy Gerrard
Heinz and Kraft merge to create global food giant
March 30, 2015

Creating a buzz throughout the global food industry, the H.J. Heinz Company and Kraft Foods Group, Inc. announced a merger deal Wednesday to create The Kraft Heinz Company, financed in part by American business mogul Warren Buffet. It will be the third-largest food and beverage company in North America.

Under the terms of the $36 billion agreement, Heinz shareholders will own a 51 percent stake in the new company, while Kraft shareholders will own 49 percent. Kraft shareholders will receive stock in the combined company and a special cash dividend of $16.50 per share, funded by an equity contribution from 3G Capital and Buffet’s Berkshire Hathaway.

“I am delighted to play a part in bringing these two winning companies and their iconic brands together,” Buffett says. “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.”

3G Capital, already a key Heinz investor, made headlines last year when it purchased Tim Hortons, merging the company with Burger King, which 3G acquired in 2010.

The combination of Heinz and Kraft will create a global powerhouse—the fifth-largest food and beverage company in the world—joining iconic brands including Heinz, Kraft, Oscar Mayer, Ore-Ida and Philadelphia. According to the companies, together they will have eight $1+ billion brands and five brands between valued at between $500 million and $1 billion.

The new publicly traded company, which projects revenues of approximately $28 billion, will be co-headquartered out of Pittsburgh and Chicago, a decision the companies say respects the heritage and hometowns of their original communities. In a call with media representatives, company officials said it is too early to tell how the transaction will impact employment and facilities.

“By bringing together these two iconic companies through this transaction, we are creating a strong platform for both US and international growth,” says Alex Behring, chairman of Heinz and the managing partner at 3G Capital. “Our combined brands and businesses mean increased scale and relevance both in the US and internationally. We have the utmost respect for the Kraft business and its employees, and greatly look forward to working together as we integrate the two companies.”

Global Intelligence provider MarketResearch says this deal will “allow both companies to grow even faster than they are now. Together, they will be able to face evolving consumer preferences and trends.”

However, according to MarketResearch, both companies—being over 100 years old—have an “old-school” way of thinking that needs to change to keep up with Millennial shoppers. “Shoppers have been moving away from buying pantry items to purchase less processed foods,” MarketResearch says. “Together, this merged company will need to find new ways to attract the natural foods consumer.”

At the close of the transaction, Behring will become the chairman of The Kraft Heinz Company. John Cahill, Kraft chairman and CEO, will become vice chairman and chair of a newly formed operations and strategy committee of the board of directors. Bernardo Hees, CEO of Heinz, will be appointed CEO of The Kraft Heinz Company. A new executive team for the combined company will be announced at a later date.

The new company’s board will include five members appointed by the current Kraft and Heinz boards, three members from Berkshire Hathaway and three members from 3G Capital.

 The transaction is subject to regulatory and Kraft shareholder approvals. The companies expect the transaction to close in the second half of this year. 

KEYWORDS: food and beverage manufacturing food processing industry global economy

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Jeremy gerrard 200px

Jeremy Gerrard was Food Engineering's Digital/Online Editor. He is a graduate of Auburn University with a degree in journalism. His previous work experience includes years spent as a reporter with the Daily Local News out of Chester County, PA. In addition to writing feature articles for Food Engineering, Jeremy covered the Dry Processing, Field Reports and People and Industry news sections.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Global Organic Food & Beverage Market to Grow

    Global Organic Food & Beverage Market to Grow

    With a CAGR of 12.07%, Bonafide Research estimates this...
    People & Industry News
  • skilled MEP worker

    Predicting Food and Beverage Manufacturing Trends for 2024

    The two words that should be kept in mind are labor and...
    Automation
    By: Derrick Teal
  • cleaning and sanitation

    The basics of cleaning and sanitation in food plants

    Sanitation maintains or restores a state of cleanliness...
    Food Safety
    By: Richard F. Stier
Subscribe For Free!
  • eMagazine
  • eNewsletter
  • Online Registration
  • Manage My Preferences
  • Customer Service

Food Plant Openings and Expansions May 2025

Food Plant Openings and Expansions May 2025

OT Cybersecurity Vulnerabilities in Food Manufacturing Facilities

OT Cybersecurity Vulnerabilities in Food Manufacturing Facilities

Understanding Impacts of OT Cybersecurity Events in Food Manufacturing

Understanding Impacts of OT Cybersecurity Events in Food Manufacturing

Food Plant Openings and Expansions April 2025

Food Plant Openings and Expansions April 2025

More Videos

Popular Stories

Vilter IHP in plant

Industrial Heat Pumps: Sustainable Energy Solutions for Now and the Future

FMTE Formed by Four Food Manufacturing Companies

Coalition Unites Europe’s Food Manufacturing Technologies and Equipment Sector

Butterfly pea flower

FDA Approves Three Food Colors from Natural Sources

CHECK OUT OUR NEW ESSENTIAL TOPICS

Alternative ProteinAutomationCleaning/SanitationFabulous Food Plants

Food SafetyMaintenance StrategiesOEE

PackagingSustainability

Events

June 17, 2025

Refrigerated & Frozen Foods’ State of the Cold Chain

Kelley Rodriguez, Editor in Chief of Refrigerated & Frozen Foods, will be joined in this 60-minute webinar by industry experts to help unpack the latest research.

January 1, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Products

Recent Advances in Ready-to-Eat Food Technology

Recent Advances in Ready-to-Eat Food Technology

See More Products

Plant of the Year

Related Articles

  • Heinz and Kraft merge to create global food giant

    Heinz and Kraft merge to create global food giant

    See More
  • Kraft Heinz to cut 2,500 jobs in US, Canada

    Kraft Heinz to close 7 North American plants, cut 2,600 jobs

    See More
  • kraft heinz merger

    Kraft shareholders approve sale of company to Heinz

    See More

Related Products

See More Products
  • Functionalized_Carbohydrate.gif

    Functionalizing Carbohydrates for Food Applications

See More Products
×

Elevate your expertise in food engineering with unparalleled insights and connections.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Food Master
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing

Food Engineering logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Food Engineering logo
  • NEWS
    • Latest Headlines
    • Manufacturing News
    • People & Industry News
    • Plant Openings
    • Recalls
    • Regulatory Watch
    • Supplier News
  • PRODUCTS
    • New Plant Products
    • New Retail Products
  • TOPICS
    • Alternative Protein
    • Automation
    • Cannabis
    • Cleaning | Sanitation
    • Fabulous Food Plants
    • Food Safety
    • Maintenance Strategies
    • OEE
    • Packaging
    • Sustainability
    • More
  • EXCLUSIVES
    • Plant Construction Survey
    • Plant of the Year
    • Sustainable Plant of the Year
    • State of Food Manufacturing
    • Top 100 Food & Beverage Companies
  • MEDIA
    • Podcasts
    • Videos
    • Webinars
    • White Papers
  • FOOD MASTER
  • EVENTS
    • Food Automation & Manufacturing Symposium and Expo
    • Industry Events
  • RESOURCES
    • eNewsletter
    • Custom Content & Marketing Services
    • FE Store
    • Government Links
    • Industry Associations
    • Market Research
    • Classified Ads
  • EMAGAZINE
    • eMagazine
    • Archive Issue
    • Advertise
  • SIGN UP!