The biz news has reported that Kraft Heinz lost billions last year. Cost cutting has made Wall Street MBAs a ton of money over the years, but the Brazilian company that threw together Kraft Heinz went “a bridge too far”. The cost cutting system only works when you take over a “fat” company. Kraft and Heinz, two already well managed companies, did not produce the promised savings when merged. Berkshire Hathaway, IMO, made a bad bet when they financed this mashup.
The days when higher costs and needed higher profits can be pushed on to consumers are ending. A lot of store brands are great, and consumers quickly pass on info about lowered quality. Amazon is allowing a brand name price increase, but to me it was interesting that the increases had to be “sold” to Amazon. In the past, brand names would have said, “Here is a price increase it,,,,,,,take it or leave it”
Today’s MBA’s seem to be taught only how to make a profit, not a product that in turn makes a profit.
Never should have thrown the two together, since to me they seemed to be doing fine.I can’t picture H.E.B. the big south Texas grocerystore chain doing that sort of deal with say Walmart. The company was founded and is run by the Butt family(yes that’s really their last name) is a direct competitor to Walmart here in the San Antonio area, and they also have stores in Mexico. It’s called greed.
Kraft-Heinz has posted a huge loss
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