What Kraft Heinz’s write-down means for other consumer brands
A $15.4bn write-down indicates declining fortunes for Kraft Heinz and other losses in asset value, meaning it views those assets as less valuable than before its merger
Bengaluru — Shares of Kraft Heinz slumped 20% on Thursday after the food company posted a quarterly loss, disclosed a Securities and Exchange Commission (SEC) investigation and wrote down the value of its Kraft and Oscar Mayer brands. The gloomy results highlighted the tough environment for the packaged food industry. The forecast from the company, which is one of billionaire Warren Buffett's largest investments, reflects changes in consumer trends away from processed foods to healthier alternatives. The after-hours slump erased $12bn from Kraft Heinz's stock market value and left its shares trading at their lowest point since HJ Heinz Company bought Kraft Foods Group in 2015, to create the world's fifth-largest food and beverage company. The $15.4bn write-down indicates declining fortunes of the iconic brands and other losses in asset value, meaning the company views those assets as less valuable than before the merger. "We expect to take a step backwards in 2019," CFO David Knopf ...
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