Thursday, February 13, 2020

Kraft-Heinz is red with more than ketchup



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.