McDonald's (MCD) to Drop Heinz Ketchup Because of Management Bad Blood
Tweet
Share
E-mail
Get Alerts MCD Hot Sheet
Join SI Premium – FREE
The next time you visit McDonald's (NYSE: MCD) and order fries or a burger something important will be amiss - the ketchup. After a 40 year relationship, McDonald's will soon stop handing out Heinz ketchup with its food. To make matters worse, the move it not because Heinz doesn't taste good or because its quality has been lacking - no, it's because of management bad blood.
"As a result of recent management changes at Heinz, we have decided to transition our business to other suppliers over time," according to a statement from McDonald's to the Pittsburgh Post-Gazette on Friday.
The management change McDonald's is referring to is the hiring of former Burger King Worldwide (NYSE: BKW) CEO Bernardo Hees to run Heinz. Burger King is McDonald's chief rival and apparently McDonald's is not too happy about this move.
The hiring of Hess follows the recent acquisition of Heinz by Warren Buffett's Berkshire Hatahway (NYSE: BRK-a) (NYSE: BRK-b) and 3G Capital. Hees is a partner at 3G, which acquired Burger King a few years back and helped bring it public again in June 2012.
The loss of McDonald is not expected to be huge for Heinz. In the U.S., Heinz is currently only being served in the Pittsburgh and Minneapolis markets. However, internationally Heinz has been gaining ground.
"It's a global transition to other suppliers. Heinz was only used in two markets in the U.S.," said Lisa McComb, director of McDonald's U.S. media relations.
"As a result of recent management changes at Heinz, we have decided to transition our business to other suppliers over time," according to a statement from McDonald's to the Pittsburgh Post-Gazette on Friday.
The management change McDonald's is referring to is the hiring of former Burger King Worldwide (NYSE: BKW) CEO Bernardo Hees to run Heinz. Burger King is McDonald's chief rival and apparently McDonald's is not too happy about this move.
The hiring of Hess follows the recent acquisition of Heinz by Warren Buffett's Berkshire Hatahway (NYSE: BRK-a) (NYSE: BRK-b) and 3G Capital. Hees is a partner at 3G, which acquired Burger King a few years back and helped bring it public again in June 2012.
The loss of McDonald is not expected to be huge for Heinz. In the U.S., Heinz is currently only being served in the Pittsburgh and Minneapolis markets. However, internationally Heinz has been gaining ground.
"It's a global transition to other suppliers. Heinz was only used in two markets in the U.S.," said Lisa McComb, director of McDonald's U.S. media relations.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- NVIDIA to acquire Hugging Face for $12.93 billion
- Aeroméxico reports 89.7% load factor in August 2026
- Planet Labs signs 7-figure deal with European defense customer
Create E-mail Alert Related Categories
Corporate News, Insiders' BlogRelated Entities
Warren Buffett, Burger King/3G, Definitive AgreementSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
