Supermarkets Soured on Kraft Heinz and Its Pricing Tactics
Moves to make quick profit seen as misstep; investor Warren Buffett admits ‘weaker bargaining hand’ with stores
Sales for the largest packaged food companies have been down the past few years as changing tastes, startup brands and e-commerce giants threaten from all angles. WSJ’s Ken Brown takes us on a walk through the supermarket. Photo: Getty Images.
Kraft Heinz Co.’s yearslong quest for cost cuts and profit undermined a key element for success in the packaged-food business: good relationships with supermarkets.
When the food giant said last week it was slashing the value of its Kraft and Oscar Mayer brands by $15.4 billion, it became clear its strategy had failed to address a broad consumer shift away from processed meats and other packaged items toward healthier, more natural options.
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