Kraft Heinz Co lost another $15.4 billion in its
first quarter this year, prompting another write-down of $666 million after a
December write-down of $153 million.
The company is run by 3G of Brazil, the same one
that manages Tim Horton’s, in both cases for Warren Buffet of Berkshire-Hathaway
investment company.
3G is notorious for slashing costs so sharply
that sales suffer even as profits initially rise. Then matters start to get
worse, according to a company profile last year by Fortune magazine.
The chief executive officer and several of his
team were fired last year and the new chief executive officer said a turn-around
is going to “take time”.
Heinz left Leamington several years ago and the
plant was taken over by a group of former managers and senior staff who have steadily
increased production.
