Popular condiment brand, H.J. Heinz Co, is officially buying our favorite mac and cheese brand, Kraft Foods Group. Heinz said that after the purchase is made they will be the third-largest food and beverage company in North America.
Heinz will now add Kraft to their already large business venture, already owning Oscar Meyer and Ore-Ida. The two companies, whose deal was made by Warren Buffett’s Berkshire Hathaway and Brazilian investment firm 3G Capital, will invest another $10 million into the new company. They estimate the annual revenue for the two companies to hit $28 billion.
Some say that the reason behind the merger is the growing difference in taste with consumers. Today consumers are looking for more unprocessed foods.
Although Heinz and Kraft are located in two different cities, they will not move for this merger. Heinz will be staying in Pittsburgh, while Kraft will stay in Chicago.