By Katie Davis K raft Heinz shakes up big food sector as it looks for acquisitions for increased market share and sales growth. Campbell Soup Co., General Mills Inc., Kellogg Co. and Mondelez International Inc can breathe a little easier now that Kraft Heinz has put Unilever in its acquisition targets. The only question is for how long and if Kraft Heinz can persuade Unilever to form the world’s second-biggest food company. This could be a hard task as the two corporations have very differing cultures with Unilever Chief Executive Officer, Paul Polman stating that their focus is on emphasized sustain- ability and that profit and social responsibility are company goals, However, for Kraft Heinz it’s all about a relentless focus on the bottom line.
the merger would unite the two companies making them the second largest food come with only Nestle SA being larger, for now. If Unilever agree to merger U.S. competitors will be forced to now compete with two industry giants that could prompt General Mills, Kellogg, Campbell and Mondelez to seek deals of their own or to merger themselves. We are in a time where big food companies struggle to grow. With the millennial foodie culture and consumers seeking out less-processed products and spend moving to companies promising more natural ingredients and more social engagement with their customers. For now these start ups are offering something big food has not been able to figure for some time now and that is how to develop new products that reignite sales.
Kraft Heinz has offered a $143 billion USD deal to Unilever,
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APRIL 2017 • SPOTLIGHT ON BUSINESS MAGAZINE
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