If a new Kraft-Heinz Company becomes a reality, it will produce $28 billion in revenue a year. That’s a lot of cheese and ketchup. Of course, the mega-giant will have a stable of brands, which include Oscar Mayer, Philadelphia, Ore-Ida, Heinz and Kraft. The motivation to merge is a financial. Costs will be cut, and jobs lost, but the bottom line will increase and so will stockholder’s portfolio.
Warren Buffet is excited about the merger. He was instrumental in getting the companies together. Buffet sees value in the merger and for good reason. Berkshire Hathaway stock will increase in value. But the question is, what does the consumer gain from a merger like this one? Ordinary consumers don’t care about these big mergers. They care about the quality and the value of the products in those brands.
If history is a measuring stick, the Kraft-Heinz merger will have an impact on availability of some brands. Folks at Imaging Advantage know that there’s no doubt that some brands will be discontinued, and others brands will lose value. But those issues don’t matter much if the company if focused on playing with their stock instead of catering to consumers.