Now you can put your Heinz ketchup on your Kraft Macaroni and Cheese! Heinz’s owner – 3G Capital Partners — hopes to cut costs and ignite growth by combining the brands. Both brands are losing favor as consumers move toward healthier and less processed alternatives. Kraft said it lost market share last year in 40% of its U.S. businesses. For Heinz, its ketchup continues to grow but for several of its brands (Smart Ones frozen dinners, Ore-Ida frozen foods), sales are declining. Even so, together they have eight brands that generate more than $1 billion each in annual sales. Considering consumers’ move toward healthier eating and less processed foods, can 3G build on these iconic brands? If you were CMO (Chief Marketing Officer) of the combined companies, what would you do?
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