McDonald’s ends 40-year deal with Heinz
One of the longest running brand partnerships has come come to an end after McDonald’s terminated its 40-year tie-up with Heinz following the latter’s decision to hire the former chief executive of rival Burger King to lead its business.
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The restaurant will stop selling Heinz ketchup in all of 34,000 stores worldwide blaming the “recent management changes” at Heinz as the reason for the switch. Heinz is now led by ex-Burger King chief executive Bernardo Hees, who joined the business in June, after it was bought in a $28bn (£17.3bn) takeover by Warren Buffett and 3G Capital. Hees is still vice chairman of Burger King and the fast food chain is also controlled by 3G Capital.
McDonald’s said it would move to other suppliers “over time” rather than an immediate stop and switch. Plans are still being finalised at the moment depending on how much share of condiment supply Heinz currently holds or each market. Globally, the restaurant says Heinz represents a small percentage of its sauce business and promised it would not have a detrimental affect.
In a statement it said: “We value the relationship we’ve maintained with Heinz for more than 40 years. We have spoken to Heinz and plan to work together to ensure a smooth and orderly transition of the McDonald’s restaurant business, and are confident that there will be no impact to our business, our customers and our great tasting food at McDonald’s.”