Thousands of workers have been laid off and several factories shuttered since the Brazilian investment firm 3G Capital helped facilitate Kraft’s acquisition of Heinz in 2015. Now, at the end of the trademark cost-cutting cycle that follows many 3G deals, Kraft Heinz must grapple with changing consumer preferences, the Wall Street Journal reports.
Some of the company’s classic products — like Oscar Meyer bologna — have fallen out of fashion as consumers choose less processed foods. Industry analysts speculate that Kraft Heinz may eye another acquisition as part of its growth strategy. The company attempted to buy Unilever in 2017 for $143 billion, but the offer was turned down.
3G has its hands in many food and beverage sectors and is responsible for many of the biggest food deals over the last several years. It is the largest stakeholder in Restaurant Brands International, which owns Burger King and Tim Hortons. It was behind the deals that led to the creation of Anheuser-Busch InBev. The firm is know for rapid cost-cutting after its acquisitions, leading to widespread layoffs.