"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."
Greg Abel took over as Berkshire Hathaway CEO this month and appears to be considering a significant move concerning Kraft Heinz. Kraft Heinz filed that Berkshire Hathaway may offer to sell 325,442,152 shares of the company. Berkshire originally helped create the merged Kraft Heinz with 3G Capital in 2015. Berkshire recorded a $3.76 billion writedown on its Kraft-Heinz stake last summer. Buffett expressed disappointment with Kraft Heinz' split plan and Berkshire's two representatives resigned from the Kraft board last spring. Kraft Heinz shares fell nearly 4% to $22.85 after the filing. Berkshire's portfolio exceeds $300 billion and includes insurers, utilities, BNSF, and various manufacturing and retail businesses.
Read at Fortune
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