McDonald’s cancels contract worth millions because of Heinz’ new CEO | RetailDetail

McDonald’s cancels contract worth millions because of Heinz’ new CEO

McDonald’s cancels contract worth millions because of Heinz’ new CEO

A long-lasting marriage in the fast food industry has finally ended now that McDonald’s has shown Heinz the door for a rather peculiar reason. Heinz appointed the former Burger King CEO, Bernardo Hees, as its newest CEO – something McDonald’s did not really appreciate.

Take-over and new CEO

Berkshire Hathaway, Warren Buffett’s investment fund, and Brazilian 3G purchased Heinz earlier this year and one of their first acts was the appointment of a new CEO. That was Bernardo Hees, former CEO for Burger King.

 

McDonald’s felt that was reason enough to terminate all worldwide contracts with Heinz. “As a result of recent management changes at Heinz, we have decided to transition our business to other suppliers over time”, McDonald’s has stated. “We have spoken to Heinz and plan to work together to ensure a smooth and orderly transition.” Heinz has refused to react to the announcement of McDonald’s.

 

Heinz had already lost its American contracts with McDonalds in 1973 after it had failed to attain certain supply goals. That was mainly due to a bad tomato harvest, after which it decided to service supermarkets first. Now it will lose all other McDonald’s contracts, with Burger King deals still in place.

 

 

(translated by Gary Peeters)

Questions or comments? Please feel free to contact the editors


Are Chinese prisoners working for H&M and C&A?

20/02/2018

British former journalist Peter Humphrey has accused C&A and H&M of using forced labour. He claims to have seen how Shanghai prisoners were forced to work for Western chains, something the retailers will now investigate.

Chanel acquires stake in online retailer Farfetch

19/02/2018

French fashion label Chanel obtained a minority stake in British Farfetch. It wants to use the online retailer’s expertise to create more digital innovations for its own customers.

Monoprix wants to acquire web shop Sarenza

19/02/2018

Store chain Monoprix, part of French Groupe Casino, entered negotiations to acquire online shoe seller Sarenza, one of France’s prime online brands.

Zalando expands collaboration with German retailers

16/02/2018

Zalando has further expanded its collaboration with physical retailers in Germany. Shoe stores were already able to ship through Zalando and now clothes stores can too.

Kiabi opens largest Belgian store in Westland Shopping Center

15/02/2018

French clothing chain Kiabi will open its fifth Belgian store in the Westland Shopping Center in Anderlecht. This will become its largest Belgian store to date, spread across 1,800 sqm.

H&M warns for difficult 2018

15/02/2018

Swedish fashion group H&M warns that 2018 could be yet another difficult year for the company. It is working to improve online sales, but store turnover will most likely continue to drop.

Back to top