Kraft and Heinz see drop in sales following merger
Kraft Heinz, the recently formed food giant, has seen an immediate drop in sales following the merger of its two arms earlier this year
11 August 2015
Kraft Heinz, the food giant formed following the merger of ketchup maker Heinz and manufacturer Kraft, suffered a drop in sales during the last quarter as the merger was being negotiated and completed, the Irish Times reports. Sales at Kraft fell by 4.9% while Heinz’s reduced by 4.1%. The drop in sales was attributed to a weak demand for beverages in Kraft’s area, while the strong dollar hit sales of Heinz products.
Kraft Heinz was formed on July 2nd, resulting in the third-largest North American food company, just days after the companies’ fiscal quarters ended.
Amid this marked reduction in revenue, Kraft Heinz says it expects to save around $1.5bn in annual costs by 2017 by introducing aggressive costs cuts and other efficiencies. “The company is focused on the difficult and challenging process of integrating our two businesses,” said CEO Bernardo Hees in a statement. “We have a lot of hard work ahead of us as we continue to design a new organisation while always putting our consumers first.”