McDonald’s – Ketchup Supplier Issue

http://www.marketingmagazine.co.uk/article/1218330/mcdonalds-ends-40-year-old-heinz-deal-bk-boss-appointment

While I was reading through my section’s Sauderites’ blogs. I came across Jonathan’s blog and found this one particularly interesting. The Ketchup company, Heinz, acquired a new CEO by the name of Bernardo Hees, who was the former chief executive officer of Burger King. Because Burger King is a major rival, McDonald’s planned to change its ketchup supplier, destroying the 40-year old business relationship with Heinz. This decision by McDonald’s surprised a lot of individuals. I agree with Jonathan that McDonald’s is not being reasonable here, since there have been a long history behind the success to McDonald’s and its complimentary goods. Heinz is probably at the top of the ketchup supplier chain and McDonald’s is just walked away from them. I feel that he real story behind this decision of McDonald’s to end the partnership with Heinz is that Warren Buffet now owns both Heinz & BK so McDonald’s fear that they will become a second tier customer and lose out in the market. This isn’t petty gripes but contingency planning.

Jonathan’s Blog: https://blogs.ubc.ca/jonathanli7/

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