Why Kraft Heinz Is Warren Buffett's Worst Bet

Video Description

Nine years after its megamerger, food behemoth Kraft Heinz is facing challenging times amid slumping sales, high inflation, a shift away from processed foods and stiff competition. Despite $27 billion in annual sales, the company must keep innovating if it wants to compete with private-label brands such as Costco's Kirkland or Wegmans' various brands which are quickly stealing market share as recent generations value lower prices over loyalty. With a new CEO, a renewed focus on core brands, and Brazilian private equity company 3G out of the picture, majority stakeholder Warren Buffett's Berkshire Hathaway is betting it can make a comeback. But experts say it could be difficult. Chapters: 0:00 Introduction 2:01 Chapter 1. A bad deal 7:40 Chapter 2. Turn around? 11:37 Chapter 3. Industry Risks Clarification: At 4:12 a speaker in this video misstated the relationship between 3G and Kraft. 3G owned Heinz prior to the Kraft Heinz merger. Produced and shot by: Natalie Rice Edited by: Evan Lee Miller Animation by: Christina Locopo, Jason Reginato Senior Managing Producer: Tala Hadavi Additional Sources: FactSet, Reuters Additional Footage: Getty, AP Photos, The Kraft Heinz Company » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Want to make extra money outside of your day job? Take CNBC’s new online course How to Earn Passive Income Online to learn about common passive income streams. Register today and save 50% with discount code EARLYBIRD: https://cnb.cx/3Iwblnk Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC on Threads: https://cnb.cx/threads Follow CNBC News on X: https://cnb.cx/FollowCNBC #CNBC Why Kraft Heinz Is Warren Buffett's Worst Bet