Great news for anyone who likes their mac and cheese topped with ketchup — it was announced yesterday that Heinz has executed a deal that will allow them to take control of Kraft Foods, which was previously owned by Warren Buffet.
Ketchup and Velveeta, together!
The merger of the companies will create the fifth largest food company in the world. It will result in brands like Oscar-Mayer, Ore-Ida, and Philadelphia along with Kraft and Heinz all being under one roof.
Kraft will benefit from the global reach of Heinz, and Heinz will benefit from the fact that Kraft is a leader in so many categories at the grocery store. But this also comes at a time when demand for name-brand processed foods is facing challenges at the checkout.
The combined company will have an estimated $28 billion in annual revenue.
→ Read more: Kraft and Heinz to Merge in Deal Backed by Buffett and 3G Capital from The New York Times