Kraft Heinz
Major food company formed from merger of two iconic brands.
PE-OWNED
Acquired by 3G Capital2015-07-01
What Made It Great
America's favorite ketchup and mac & cheese in every home.
What PE Will Likely Do
Kraft Heinz will reduce the quality of its iconic products like Heinz Ketchup and Kraft Macaroni & Cheese by replacing high-quality tomatoes and cheese with cheaper ingredients
Kraft Heinz will implement 'shrinkflation' by reducing the package sizes of its products while keeping prices the same or increasing them
Kraft Heinz will consolidate manufacturing facilities and switch to lower-cost suppliers, leading to changes in the taste and texture of its products
Kraft Heinz will alter the recipes of its products to reduce costs, potentially changing the flavors that consumers have come to expect
Expected Timeline
“0 to 6 months months”
Minimal visible changes as ownership transition occurs
“6 to 12 months months”
Behind-the-scenes supplier and formula changes begin, with gradual quality degradation
“12 to 24 months months”
Consumers start noticing quality differences in Kraft Heinz products, with complaints and negative reviews increasing
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Be on the lookout for changes in the taste, texture, and packaging of Kraft Heinz products
Compare the quality and pricing of Kraft Heinz products to competitor brands to identify any notable declines
Voice your concerns and feedback directly to Kraft Heinz to hold the company accountable for maintaining the quality of its iconic products
Alternatives
Look for family-owned or employee-owned businesses