Brazilian Private Equity Firm 3G Capital Exits Kraft Heinz

Brazilian private equity firm 3G Capital has quietly parted ways with its 16.1% stake in the company, as reported by CNBC. This move comes nearly nine years after 3G orchestrated the groundbreaking merger between Kraft Foods and Heinz alongside Warren Buffett. The firm’s influence over Kraft Heinz had been waning in recent years, with its board representation dwindling from three seats to none by July 2022. Despite being a significant investor, 3G had not been actively involved in the management or board decisions of Kraft Heinz for some time, according to statements from the company.

The departure of 3G marks the end of an era for Kraft Heinz, which faced significant challenges in the packaged food industry amidst changing consumer preferences and increased competition. Despite initial success driven by cost-cutting strategies, the company encountered a series of setbacks, including a major earnings downturn in 2019. In response, 3G handpicked new leadership for Kraft Heinz, initiating a turnaround effort that included strategic shifts and divestments. With the appointment of Carlos Abrams-Rivera as CEO, Kraft Heinz enters a new chapter, notably without ties to 3G for the first time in its recent history.

Read the full article at CNBC.


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