Dive Brief:
- In June, Heinz was sold to an investment consortium run by Berkshire Hathaway and 3G Capital. Given that 3G is also the parent of Burger King, it raises a question about Heinz' continuing dominance in fast-food condiments.
- McDonald's is a much bigger buyer of Heinz ketchup than is Burger King.
- The new CEO of Heinz is the former CEO of Burger King, and remains the restaurant chain's vice chairman.
Dive Insight:
We've had the burger wars. We've had the cola wars. It only makes sense that we would have a ketchup war. But our sense is that cooler heads will prevail. There's no business reason whatsoever for Heinz to cut off sales to McDonald's. And there's no advantage to McDonald's to cut off a supplier because it's owned by a rival's parent. Making peace, like pouring ketchup, can be a slow process. But it's worth it, and we think Heinz will agree.