The world’s largest fast food chain is changing its ketchup. McDonald’s in a prepared statement on Friday said it was cutting its ties with Heinz the condiment making company after a relationship of 40 years. McDonald’s said its reason for the change was due to changes in management at Heinz.
A former CEO at Burger King became the Heinz headman in June following the purchase of the condiment company by 3G Capital and Berkshire Hathaway, Warren Buffet’s investment business. 3G is an investment company based in Brazil and has controlling interest in Burger King.
The change in ketchup makers might be felt more overseas that in the U.S. McDonald’s in the U.S. only uses products made by Heinz in Minneapolis and Pittsburgh restaurants.
McDonald’s did not mention what the value was of their business relationship with Heinz was. Heinz said it is their policy not to make comments on customer relationships.
Heinz is based in Pittsburgh and makes vinegar, beans as well as other foods. The CEO is now Bernardo Hees, who serves as the vice chairman on the board at Burger King and is a partner in 3G Capital.
Hees is 43 and from Brazil, He became Burger King’s CEO after 3G purchased the then struggling fast food chain in mid 2010. He slashed costs as soon as he took control, revamped the menu at the chain and launched a huge marketing campaign attempting to make BK a stronger competitor to McDonald’s its long time rival.
Shares at McDonald’s were up by 10 cents on Friday to end the week at $94.78.
Heinz is currently privately held.
