WHILE Heinz has gobbled up the Kraft Foods Group with all its international connotations, there appears there will be little effect in the New Zealand market.
For Heinz, it is a historic transaction that unites two powerful businesses but the Kraft business in New Zealand through Mondelez is unaffected
“While we are in the very early stages of this process, Heinz is committed to communicating with its partners over the coming months as information becomes available,” said Heinz-Wattie managing director Mike Pretty. “In the meantime, we don’t anticipate any changes to our organisation outside of the ordinary until this transaction is complete.”
The effect on Mondelez in New Zealand which owns and sells Kraft product in this market, remains unaffected. In fact, Mondelez rights on the trademarks are not impacted by the move. Kraft Foods Inc actually spun off its North American cheese and grocery business back in 2012 as Kraft Foods Group. Along with that spin-off, Kraft Foods Inc then changed its name to Mondelez International and is totally independent of the company that Heinz is merging with.
There has been considerable media confusion over which company is the subject of the merger. While Mondelez and its Kraft branded products are unaffected, for Heinz it is a historic transaction that unites two powerful businesses, is expected to deliver incredible shareholder value and provides a further platform for rapid growth both domestically in the US and internationally.
Speculation is now rife in the US that Mondelez, which spirited off with the vast majority of the former Kraft’s global brands, may be the next takeover target for the Brazilian private equity firm 3G and Warren Buffett’s Berkshire Hathaway.
