McDonald’s world famous french fries will be losing its original taste as the fast-food giant ends its relationship with the ketchup maker, H.J. Heinz Co. McDonald is forced to seek new ketchup manufacturer after the 40 year partnership with Heniz Ketchup. Warren Buffett’s Berkshire Hathaway and 3G Capital, a Brazilian investment firm that also owns Burger King, acquired this ketchup guru. Soon after its acquisition, Heniz announced that the company would no longer supply ketchup to McDonald. 3G Capital would suffer financially from cutting ties with McDonald. Burger King’s sale will not increase due McDonald’s change of ketchup, and Heniz co. would have lost a big buyer with more than 34000 restaurants worldwide. That could only benefit Heniz ketchup’s main rival, Hunt’s, as it is the potential ketchup supplier for McDonald. I believe it is an unnecessary move for 3G Capital since it is not beneficial to the firm at all. I believe it is more of a personal decision from Bernardo Hees, the CEO of Burger King and a partner of 3G Capital, than a tactical one.
“McDonald’s to stop using Heinz ketchup at its restaurants.” CBCnews. CBC/Radio Canada, n.d. Web. 18 Nov. 2013. <http://www.cbc.ca/news/canada/windsor/mcdonald-s-to-stop-using-heinz-ketchup-at-its-restaurants-1.2254119>.