Monday, 28 October 2013

McDonald’s ends 40-year relationship with Heinz after ketchup maker hires ex-Burger King chief

McDonald’s ends 40-year relationship with Heinz after ketchup maker hires ex-Burger King chief


“We have spoken to Heinz and plan to work together to ensure a smooth and orderly transition,” said McDonald’s, which has more than 34,000 restaurants around the globe.
Jason Alden/Bloomberg“We have spoken to Heinz and plan to work together to ensure a smooth and orderly transition,” said McDonald’s, which has more than 34,000 restaurants around the globe.
    The world’s biggest fast-food chain is seeking new ketchup for its famous french fries.
McDonald’s Corp on Friday said it plans to end its 40-year relationship with ketchup maker H.J. Heinz Co, since that company is now led by Bernardo Hees, the former chief executive of hamburger rival Burger King Worldwide Inc.
“As a result of recent management changes at Heinz, we have decided to transition our business to other suppliers over time,” McDonald’s said in a statement.
“We have spoken to Heinz and plan to work together to ensure a smooth and orderly transition,” said McDonald’s, which has more than 34,000 restaurants around the globe.

The switch will be more apparent overseas than in the United States, since McDonald’s only serves Heinz ketchup in two American markets – Pittsburgh and Minneapolis, the Pittsburgh Post-Gazettereported on Friday.A spokesman for Heinz did not immediately respond to requests for comment.

The move from McDonald’s could benefit Heinz ketchup rivals Hunt’s, owned by ConAgra Foods Inc, and Del Monte.
Warren Buffett’s Berkshire Hathaway and an investment fund affiliated with 3G Capital bought Heinz for US$28-billion in June and immediately named Hees CEO.
Burger King went public in June 2012, less than two years after it was taken private by 3G Capital Management LLC, which retains a stake in the fast-food chain.
© Thomson Reuters 2013

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