The Kraft Heinz Company has announced that its Board of Directors and Executive Leadership Team have been evaluating potential strategic transactions for several months to unlock shareholder value. This review comes as consumer demand for its products slows due to an uncertain economic environment and high inflation.
Concurrently, Berkshire Hathaway Inc. has informed Kraft Heinz that it will no longer hold Board seats, consistent with its other non-controlled investments. Timothy Kenesey and Alicia Knapp have stepped down from the Board, reducing its size to 10 members.
CEO Carlos Abrams-Rivera stated that the company's goal is to drive profitable long-term growth and value creation, and the evaluation of strategic transactions is consistent with this objective. The company has not set a timetable for completion of this process and will not make further announcements unless deemed appropriate or necessary.
The departure of Berkshire Hathaway representatives from the board, while stated as consistent with their investment philosophy, could pave the way for potential changes in Kraft Heinz's strategy or even a sale of Berkshire's stake. This development follows Warren Buffett's previous acknowledgment of overpaying for Kraft in the 2015 merger.
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