Kraft Heinz has just dropped plans to demerge, and will instead invest $600m on marketing new diet products. The original merger by Warren Buffet & 3G Capital was in 2015 (Financial Times). Was the merger okay or not?
Henry Heinz had 57 varieties in 1896 and has added more varieties since then. Soon there will be even more.
An important issue in M&A deals is integration. A second issue is whether to buy or build a business or both.
These issues are also discussed in the book “M&A This Way!”.
Let’s review the above matters.
Comments:
Below are comments on making an M&A succeed, big or small, based on our experience.
- Integration: Doing the Kraft -Heinz merger in 2015 wasn’t the only thing that matters, integrating the two businesses also needs careful attention at the macro and micro levels.
- Building your own business – organic growth – is an alternative to an M&A or a demerger. But business-building takes time which is a precious commodity. Also needed are products with unique selling points, a strategy and a business plan for achieving it.
- In this case: it seems the business-building will be speeded up by marketing new products in the diet niche area using the Heinz brand name. Something like: Eat their tasty products and get thin.
Concluding remarks:
- In this case: in our experience, closing an M&A deal must be planned from the start of the deal and concluded within say 90 days after the deal closes. After that, the acquirer moves into business building mode.
- In this case: in our experience, closing an M&A deal must be planned from the start of the deal and concluded within, say, 90 days after the deal closes. After that, the acquirer moves into business building mode.
- If at first the business plan doesn’t work, do what Paul Simon sang: “Make a new plan, Stan!” (50 ways To Leave Your Lover).
- This seems to be the lesson from Kraft Heinz – catch up, not just ketchup….
- Readers are advised: to review M&A and business building matters with professional advisors in each country concerned.
- For more general M&A information: please read the book “M&A This Way! “available at https://mergeacq.com/ma-book/.
- For advice or assistance in specific cases: please email: [email protected]
© Leon Harris, MergeAcq.com, 20.2.2026