The Journal. Kraft Heinz's Big Breakup
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Sep 3, 2025 Jesse Newman, a food industry reporter for WSJ, dives into the explosive breakup of Kraft Heinz, shedding light on the dire consequences of a historic merger gone wrong. She discusses how shifting consumer preferences for healthier and budget-friendly options have led to a brand loyalty crisis. Newman also highlights the impact of private equity strategies on innovation and growth. Tune in to discover how this split aims to restore focus and adapt to the post-pandemic food revolution.
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Merger Of Icons Failed To Sustain Growth
- The 2015 Kraft-Heinz merger combined iconic pantry brands but failed to revive growth long-term.
- The union is now being effectively undone as the merged company splits back into two focused businesses.
Austerity Boosted Profits, Harmed Innovation
- 3G deployed zero-based budgeting to aggressively cut costs across Kraft Heinz.
- Those cuts boosted short-term profits but reduced spending on R&D and marketing, hurting long-term sales.
Extreme Cost Cuts Reached The Smallest Details
- 3G's cuts reached odd levels like rationing color photocopies and banning corporate jet use.
- Executives also closed factories and cut thousands of jobs to extract savings quickly.