Kraft and Heinz see drop in sales following merger

Kraft Heinz CEO Bernardo Hees

Kraft Heinz, the recently formed food giant, has seen an immediate drop in sales following the merger of its two arms earlier this year

Print

PrintPrint
News

Read More:

11 August 2015 | 0

Share this post:
 

advertisement



 

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.”

 

advertisement



 
Share this post:

Read More:



Leave a Reply

Your email address will not be published. Required fields are marked *

Back to Top ↑