Is Heinz a bitter taste for McDonald’s?

They’ve been together since the Second World War but going forward Heinz tomato ketchup will no longer be on the McDonald’s menu.

tomato sauceSo, what has caused McDonald’s to drop Heinz Ketchup?

It’s down to the intense competition that exists between McDonald’s and Burger King.

Earlier this year, Heinz was taken over by Warren Buffett’s Berkshire Hathaway and the Brazilian investment fund 3G in a $28 billion deal. The new owners of Heinz put Bernardo Hees, former chief executive of Burger King in charge of Heinz.

Earlier this week McDonald’s announced that “As a result of recent management changes at Heinz, we have decided to transition our business to other suppliers over time”.

It’s interesting though as if you look deeper into the relationships you’ll find that as well as having a stake in Heinz, investment fund 3G also controls Burger King.

It arguably makes sense therefore for McDonald’s to drop Heinz as otherwise there would be the risk that by having Heinz as a supplier, McDonald’s would be increasing the profits of Heinz who in turn could remit those profits to 3G who could then use the funds to strengthen Burger King to win market share from McDonalds.

So there you go and the next time you’re munching on your Big Mac and realise it’s no longer Heinz Ketchup with it you’ll know why.

Have a break. Have a fish and chip flavoured chocolate bar...

Nestlé’s Kit Kat is one of the world’s best selling chocolate bars. It is estimated that over 400 Kit Kat fingers are consumed every second[..]

Is it me or is this just nuts?

Anyone that suffers from an allergy knows full well that it can be a very unpleasant experience. One of the more common allergies is when[..]

Would a pizza encourage you to get a vasectomy...

Companies often offer incentives to encourage people to sign up for their products or services. BOGOF is a term that’s well known in marketing circles.[..]

You are (probably) a liar...

Here’s a nice ethical question for you – have you lied recently? My guess is that you have. Now before you get all righteous about[..]

Don't worry, he's ok...

A few years ago if a company wanted to advertise their products they mainly used the traditional media methods of TV, radio and print. Nowadays[..]

There's a 90% chance...

There’s been a significant reduction in the use of cash during the pandemic. A lot of shops now only accept card payments so that they[..]

Start walking...

Do you sit at a desk when you’re at work? If you do, how long do you spend sat there before you get up to[..]

I never emailed you...

Sometimes it’s the simple scams that can cause the most damage. We hear all the time about ignoring scam phishing emails where fraudsters are pretending[..]

Does this help you concentrate?

The Journal of Consumer Research published the results of five experiments into how the level of background noise can impact on performance when someone is[..]