Can Lemann and Buffett revive Kraft Heinz after Unilever’s rebuff?
New York/Seattle — The pressure is on billionaires Jorge Paulo Lemann and Warren Buffett to do another blockbuster deal to revive the fortunes of their food giant, Kraft Heinz. But this time, finding one might not come cheap, or easy. Since Kraft’s attempt to acquire Unilever fell apart a year ago, lacklustre growth across the industry has led to a flurry of acquisitions among its rivals. This may make it harder for Lemann’s 3G Capital to do what it does best: use Buffett’s deep pockets to buy growth, cut costs and improve profit margins. Without a deal, the big worry is that the maker of Planters peanuts, Maxwell House coffee and Oscar Mayer hot dogs will end up like any old US food company, struggling to boost sales with a line-up of brands whose best days are behind them. Kraft’s stock has tumbled 26% since the failed Unilever bid — the most among major consumer-staples companies — wiping out $30bn from the company’s market value. "The premium has really come out of the stock," s...
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