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HindustanTimes Fri,19 Dec 2014

World

McDonald's to Heinz: no more ketchup please
Agencies
Pittsburgh, October 28, 2013
First Published: 19:26 IST(28/10/2013)
Last Updated: 19:40 IST(28/10/2013)

McDonald's Corp plans to end its 40-year relationship with ketchup maker HJ Heinz Co from Friday, since that company is now led by Bernardo Hees, the former chief executive of hamburger rival Burger King Worldwide Inc, according to reports in foreign newspapers.

McDonald's statement read, "As a result of recent management changes at Heinz, we have decided to transition our business to other suppliers over time."

"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 domestic markets - Pittsburgh and Minneapolis, the Pittsburgh Post-Gazette reported on Friday.

Reports suggested that 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 $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.

(Reuters and ABC news)


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