The H.J. Heinz and Kraft Foods Group have merged into one of the food and beverage industry’s largest companies across the globe.
This move is intended to give the married companies leverage when it comes to lowering costs, expanding internationally and becoming a more consumer-friendly company, according to media reports.
The merger, valued at approximately $36 billion will give Kraft the ability “to move and grow faster than we could on our own,” said Kraft CEO, John Cahill, in media reports. Cahill will become the vice-chair of the new Kraft Heinz Co. The combined company is excepted to collect roughly $28 billion in revenues and its portfolio will include such brands 57 Sauce, Jell-O, Kool-Aid, Maxwell House, Planters, Velveeta and Lunchables.
The combined companies are the fifth largest food company in the industry. A Kraft product is reportedly in 98 percent of US households and Kraft ranks No. 1 in 17 core categories. Meanwhile Heinz products rank as No. 1 in categories spanning 50 countries.