Bye Bye Heinz (Warren: business, trading, sold)

[Hopes]

What Happens When Warren Buffett Buys Your Company - Businessweek

[Hopes]

I didn't know this:

Not all of this is down to chance. Like Coco-Cola (also owned by Buffet) the recipe for ketchup varies according to each country’s palate — in the Philippines it contains banana.

http://www.newstatesman.com/business...story-yet-come

[Clint.]

I'll pretend to know a little about these things for a minute. I read that, concerning Warren Buffet, Heinz is something of an exception for him because the brand is so relatively strong - it has posted profits for a few consecutive years, and has a relatively low annual growth rate. So, all in all it's a sound company and worth holding on to, but considering the premium paid and significant brand establishment and growth prospects, will all parties be content to let business go on as usual (relatively speaking) without a shake up of some kind?

Remember that Buffet isn't the only investor. Of course Buffet isn't in the charity business either, so are we going to see a subsequent search for 'efficiency and synergy' that has local fallout? How many local hourly workers are at Heinz? Are they unionized and highly paid? Or will the focus be on expanding the brand presence rather than cutting costs? Both? Something else?

[Caladium]

I think I'd like to try that ketchup with banana in it. Would it be incredibly great--or incredibly awful? Enquiring minds want to know!

[UKyank]

The Heinz ketchup with balsamic vinegar in it is pretty good.

On a side note, besides the business headquarters part, does Heinz even produce any of their products here?

[Hopes]

Originally Posted by Clint.

I'll pretend to know a little about these things for a minute. I read that, concerning Warren Buffet, Heinz is something of an exception for him because the brand is so relatively strong - it has posted profits for a few consecutive years, and has a relatively low annual growth rate. So, all in all it's a sound company and worth holding on to, but considering the premium paid and significant brand establishment and growth prospects, will all parties be content to let business go on as usual (relatively speaking) without a shake up of some kind?

Remember that Buffet isn't the only investor. Of course Buffet isn't in the charity business either, so are we going to see a subsequent search for 'efficiency and synergy' that has local fallout? How many local hourly workers are at Heinz? Are they unionized and highly paid? Or will the focus be on expanding the brand presence rather than cutting costs? Both? Something else?

Read the links I posted last night. One of the links describes how things will change for Heinz now that it's not public. The people who will be losing their jobs are the people whose jobs were associated with the stocks, not the hourly workers. The company will be focusing more on profit margins instead of sales. That's about it in a nutshell. I suspect that Heinz will be made public again when the stock market becomes more stable.

btw, Heinz is not an exception. Warren buys strong brands.

[MathmanMathman]

Originally Posted by UKyank

The Heinz ketchup with balsamic vinegar in it is pretty good.

On a side note, besides the business headquarters part, does Heinz even produce any of their products here?

I remember when Heinz bought HP Sauce and moved its production to the Netherlands. That didn't make the Brits very happy. Heinz also bought Lea & Perrins but that's still made in Britain, although the American version is made in New Jersey.

[MathmanMathman]

I know years ago, some big shareholders of Heinz demanded the company be shaken up to increase its stock value. Up to that time people mainly bought Heinz if they wanted to be paid a good dividend.

Wonder if Buffet and 3G see Heinz as undervalued or poised for growth? Or just stable and a good place to park your money?

[Hopes]

Originally Posted by MathmanMathman

Wonder if Buffet and 3G see Heinz as undervalued or poised for growth? Or just stable and a good place to park your money?

It's stable and poised for growth. It has become a global company that is only going to get bigger and bigger.

Some people made comments about the sale being done to help Kerry liquidate assets. Of course, that's silly. However, I have another theory: Buffet has had his eye on Heinz since the 80s. He has watched it grow into a global company. Now that Kerry is Secretary of State, it's an even wiser investment because Kerry/Theresa can have a strong global influence on behalf of Heinz. After everything Warren as done for the Democratic party, Kerry/Heinz will gladly help Warren with anything he needs for furthering the global growth of Heinz. I also think the global focus is a major reason why Warren chose 3G as a partner.

[Hopes]

The CEO is going to make approximately 100 million from this sale.

Teresa Heinz not a big winner in Buffett deal - Feb. 14, 2013