In a consolidation that will birth the fifth largest food company in the world, H.J. Heinz Company announced on Wednesday its plan to purchase Kraft Foods.
The mega-merger, which was engineered by Warren Buffet’s Berkshire Hathway and the Brazilian investment firm 3G Capital, brings under one roof products ranging from the ubiquitous Heinz Ketchup and Kraft Mac n’ Cheese to the companies’ other brands including: Oscar Mayer lunch meats, Planters nuts, Bagel Bites, Maxwell House Coffee, Jell-O, Kraft Singles, Ore-Ida potato products, Weight Watchers brand frozen dinners, and Kool-Aid.
The expected annual revenue of Kraft Heinz Co. is expected to be about $28 billion.
The Associated Press reports that the $40 billion buyout reflects pressures facing packaged food makers as consumers are increasingly interested in purchasing less processed food.
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However, healthy food advocates are concerned that the merger will dramatically reduce consumer choice and give even more power to a handful of food industry giants. As noted by Food & Water Watch senior policy advocate Patrick Woodall, the deal largely escaped the scrutiny of federal anti-trust authorities because very few of Kraft and Heinz products compete head-to-head.
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