Published On: Sat, Mar 28th, 2015

Super Business Heinz To Merge With Kraft

Food companies, Heinz and Kraft, will merge later this year, according to sources. Investor, Warren Buffett, closed the deal to buy Kraft and plans to merge it with Heinz in the future. The move has surprised industry experts and has prompted staff in both the UK and Us to fear for their jobs. The base of the new company will be in Chicago, and so some believe that there could be potential job cuts soon. At the moment, there has been no official statement about the issue from either side of the deal. People are waiting to hear what this means for the future of the two brands.

Heinz To Merge With Kraft

The food manufacturing industry is a lucrative one at the moment. While the current economic crisis has hit most industries hard, luxury food has not had the same issue. In fact, snack items have made considerable profits over the last few years. For business owners in the industry that has meant quick expansion and profitable investments. Over the past decade, this sector has grown. The current deal is symptomatic of the ever-expanding market for packaged food in the UK and US. Kraft has seen its sales soar over the last five years, making this a secure investment for Buffet.

In the UK, Heinz employs thousands of staff to work in factories and the delivery department. Some staff members fear that the new move will put their job and livelihood in jeopardy. While the main HQ will be in Chicago, people argue that a great deal of the manufacturing business might stay in Britain. In the UK, essential skills, such as forklift training tend to be more accessible than in the US. That means that it would be financially viable for the company to keep plenty of factories in England and Scotland.

The new super company, which will take the name Kraft Heinz Company, will start trading later this year. That means that some of the most popular brands, such as Heinz beans and, of course, Oreos will come under the same umbrella company. The net value of the combined businesses will be $36 billion, which puts them at the forefront of many modern companies. Experts believe that this current move will put the company in a powerful position within the food and snack industry. In combining two of the world’s most famous brand names, Buffet has created a strong business to take into the future.

Now that the companies will be one entity, the business managers will have to focus on new lines of products. The Kraft Heinz Company already produces some of the best selling products in the supermarkets. That is not to say that the company should not try to diversify and reach new markets in the sector. It has been many years since either business released a new line of confectionery products. It will be interesting to see what their next move is by way of developing new food products. Experts believe that this merger will bring a wave of change for the company. There may be a whole lot of changes for the enterprise in the coming years if we are to believe the expert’s opinions.

While the future of the new company hangs in the balance, people are speculating on what will happen after the merger. The super business will take its rightful place as the biggest food and drink manufacturer in the states. That means that it will have a prominent position when it comes to the future of food development. For now, it is unclear what changes will happen and how the company will proceed in the modern business world.