McDonald’s to Make Big Ketchup Switch After 40 Years

by Christopher Freeburn | October 28, 2013 10:53 am

McDonald’s to Make Big Ketchup Switch After 40 Years

heinz ketchup sign building 630 300x225 McDonalds to Make Big Ketchup Switch After 40 Years[1]It was a partnership that lasted four decades[2]. Now, it’s over.

Heinz ketchup will no longer be found at McDonald’s (MCD[3]) restaurants. The burger chain says it is switching to other ketchup suppliers due to a “recent management change at Heinz,” a reference to the ketchup-maker’s recent acquisition by Berkshire Hathaway (BRK.A[4], BRK.B[5]) and Brazilian investment firm 3G, USA TODAY notes.

McDonald’s was apparently irritated by the appointment of Bernardo Hees as CEO at Heinz. Hees was formerly the CEO of arch-rival Burger King (BKW[6]).

The change in ketchup suppliers is likely to have little impact on Americans who buy their burgers at McDonald’s. In the U.S., Heinz ketchup is only used at McDonald’s restaurants in Pittsburgh and Minneapolis.

Heinz was taken private by the partnership between 3G and Warren Buffett’s investment firm earlier this year in a deal worth more than $23 billion[7].

Shares of McDonald’s rose modestly in Monday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/10/heinz-ketchup-sign-building-630.jpg
  2. that lasted four decades: http://www.usatoday.com/story/money/business/2013/10/25/mcdonalds-ends-relationship-with-heinz/3194309/
  3. MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
  4. BRK.A: http://studio-5.financialcontent.com/investplace/quote?Symbol=BRK.A
  5. BRK.B: http://studio-5.financialcontent.com/investplace/quote?Symbol=BRK.B
  6. BKW: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKW
  7. in a deal worth more than $23 billion: http://investorplace.com/2013/02/berkshire-hathaway-partners-for-23b-heinz-purchase/

Source URL: http://investorplace.com/2013/10/mcdonalds-make-big-ketchup-switch-40-years/
Short URL: http://invstplc.com/1aLFvzN