The strategy of Kraft Heinz dramatically changed after the merger in 2015. The new strategy is considered to be iconoclastic. This is because the new leaders of the company are not reminiscing in the past or using the former strategies that worked for the company. They did a complete overhaul to the leadership and the strategies that “worked” for the company. According to Key (2015) the new company objectives are as follows: 1. Profitable sales growth, 2. Best-in-class margins, and 3. A superior return of capital. The company will no longer let employees slip through the cracks and gain a retirement, it must be earned. Since 3G Capital is the holding company for Kraft Heinz they follow the meritocracy model set forth by 3G. Colvin (2017) discussed
…show more content…
Many private equity companies start their takeovers with an exit already planned, 3G Capital has shown it is different. With a look at the strategy this company used in one of its most famous takeovers we can evaluate the strategy further. Most Private equity companies would pull out inside of five years unlike this twenty-eight-year venture in beer. Three of the founding partners bought Braham in 1989 which bought another brewery in 1999, and another in 2004, this created the InBev Company that bought out Anheuser-Busch in 2008 and then SAB Miller in 2016. This shows that the company is in it for the long haul. While most of this was done before 3G Capital was established, the idea that three of the five founders of 3G Capital have this long-haul idea says a …show more content…
One of the goals of the merger was higher international sales for one of the companies. This may be an issue because of the vast number of brands that have already accomplished this feat. This may lead to the bigger picture with more purchases.
The biggest barrier that Kraft Heinz is likely to face is regulation controlling expansion. If the company executives expand in the same fashion that the 3G Capital company was founded on they will hit a roadblock when they purchase enough food and beverage companies. Looking at AB InBev, who has purchased most of the top beer companies, the question is where do they go now. They are in a position where they can only buy small breweries; this could also happen to Kraft Heinz.
When it comes to socio-political issues looking at AB InBev again is the best comparison. The company is purchasing small breweries and feeling the social ramifications of
it. The company recently completed the purchase Wicked Weed Brewery, and according to Paste Magazine was then stripped of voting rights in the North Carolina Brewer’s Guild. They have lost partnerships and collaborations because of the merger. This could forecast the future of
Many private equity companies start their takeovers with an exit already planned, 3G Capital has shown it is different. With a look at the strategy this company used in one of its most famous takeovers we can evaluate the strategy further. Most Private equity companies would pull out inside of five years unlike this twenty-eight-year venture in beer. Three of the founding partners bought Braham in 1989 which bought another brewery in 1999, and another in 2004, this created the InBev Company that bought out Anheuser-Busch in 2008 and then SAB Miller in 2016. This shows that the company is in it for the long haul. While most of this was done before 3G Capital was established, the idea that three of the five founders of 3G Capital have this long-haul idea says a …show more content…
One of the goals of the merger was higher international sales for one of the companies. This may be an issue because of the vast number of brands that have already accomplished this feat. This may lead to the bigger picture with more purchases.
The biggest barrier that Kraft Heinz is likely to face is regulation controlling expansion. If the company executives expand in the same fashion that the 3G Capital company was founded on they will hit a roadblock when they purchase enough food and beverage companies. Looking at AB InBev, who has purchased most of the top beer companies, the question is where do they go now. They are in a position where they can only buy small breweries; this could also happen to Kraft Heinz.
When it comes to socio-political issues looking at AB InBev again is the best comparison. The company is purchasing small breweries and feeling the social ramifications of
it. The company recently completed the purchase Wicked Weed Brewery, and according to Paste Magazine was then stripped of voting rights in the North Carolina Brewer’s Guild. They have lost partnerships and collaborations because of the merger. This could forecast the future of