"Buffett and the Brazilian investment firm 3G Capital orchestrated the merger of Kraft and Heinz back then because they already owned Heinz and believed in the power of their brands. Now Greg Abel may be plotting a different course. Over the years since Buffett had come to realize that the company's competitive moat around its brands wasn't as strong as he thought as consumers have increasingly been willing to switch to store brands and move away from processed foods."
"Berkshire took a $3.76 billion writedown on its Kraft-Heinz stake last summer. Buffett said last fall that he was disappointed in Kraft Heinz' plan to split the company in two, and Berkshire's two representatives resigned from the Kraft board last spring. But still it was rare for Buffett to unload an acquisition during his six decades leading Berkshire even when he soured on a business' prospects."
Berkshire Hathaway may offer to sell its 325,442,152 Kraft Heinz shares, according to a Kraft Heinz filing that prompted a nearly 4% drop in the stock. Berkshire and 3G Capital led the 2015 Kraft-Heinz merger, but declining brand strength and changing consumer preferences prompted a $3.76 billion writedown on Berkshire's stake. Buffett expressed disappointment with Kraft Heinz's split plan and Berkshire's board representatives resigned. The potential sale would mark a rare divestiture under Buffett's tenure and could signal a broader review of Berkshire's diverse $300+ billion stock portfolio and operating businesses under new CEO Greg Abel.
Read at Fast Company
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