Wednesday, 30th July 2014

McDonald’s Cuts Ties With Heinz

Posted on 28. Oct, 2013 by in Business

Heinz Ketchup Packet

McDonald’s announced it will stop using Heinz to supply its restaurants.

McDonald’s Corporation, the world’s largest fast food chain, announced yesterday (Friday) that it was “cutting ties” with Heinz Corporation, the world’s most famous ketchup-producing company.

The reason for the move appears to be personal. The H. J. Heinz Company, which is located in Pittsburgh, Pennsylvania recently hired the former head of McDonald’s primary rival and fiercest competitor, Burger King. His name is Bernard Hees and he will be “the man in charge” at Heinz, beginning immediately.

McDonald’s Corporation apparently does not like Mr. Hees and, as a result, the company that owns and operates thirty four thousand restaurants around the world, has decided to stop buying ketchup from Heinz.

Mr. Hees, who is also a partner in 3G Capital, the company that, along with Warren Buffet’s Berkshire Hathaway Corporation, purchased Heinz this year should have no difficulty finding new customers to offset the loss of McDonald’s.

In truth, the loss is not that great. Heinz only supplied McDonald’s stores in two American cities — Pittsburgh and Minneapolis.

There was no indication given as to when McDonald’s will stop purchasing ketchup from Heinz. However, it is likely to end all purchases sooner rather than later.

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