When Heinz bought Kraft three years ago, the merger created the third-largest food and beverage company in North America and the fifth-largest in the world, with about $28-billion in revenue. In South Africa, however, Kraft-Heinz is but a little giant. Phil Roux, CEO at Pioneer Foods, who entered into a joint-venture agreement with Heinz to establish Heinz Food SA in 2003, said Kraft-Heinz products had "mixed success" as Heinz's tomato sauce range had not fared well. Powerful "local brands with established market positions and high consumer commitment levels were part of the problem", said Roux. "Consistent brand investment and differentiation is required in some instances and different tactics for certain categories." Roux said that although local brands were the real value drivers in the company's brand portfolio, the joint venture with Kraft-Heinz would consider strategic acquisitions in order to maximise opportunities. But Kraft-Heinz, operating separately in Africa, is struggl...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.