A Billionaire's Tough Strategy Goes Awry
Bloomberg Businessweek US|February 13, 2023
Jorge Paulo Lemann set stiff cost-cutting goals. Did Americanas brass go too far to meet them?
By Daniel Maxwell
A Billionaire's Tough Strategy Goes Awry

It wasn’t too long ago that Jorge Paulo Lemann was arguably the most respected—and feared—corporate baron on Earth. The Brazilian billionaire and his two longtime business partners were scooping up multinational giants at a frenetic clip and folding them into the vast empire they built from Rio de Janeiro.

In 2008 it was Anheuser-Busch InBev. In 2010, Burger King. Then came H.J. Heinz, Tim Hortons, Kraft Foods Group and, finally, in 2016, the biggest of them all: brewer SABMiller. With each new acquisition, Lemann, inspired by his idol, former General Electric Co. Chief Executive Officer Jack Welch, would order up deep cost cuts. Perks were eliminated, payrolls slashed, factories shuttered.

It was excruciating for rank-and-file employees but thrilling for Lemann’s financial backers, who pocketed windfall gains as the new, leaner companies churned out ever-bigger profits. The 3G model, as it was dubbed on Wall Street in honor of Lemann’s principal investment company, 3G Capital Inc., was so ruthlessly effective that it began to revolutionize thinking in C-suites across America. Even Warren Buffett, who invested in a couple of the deals Lemann struck, seemed mesmerized. “Jorge Paulo and his associates are extraordinary managers,” he gushed in 2013.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BLOOMBERG BUSINESSWEEK USView all
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 mins  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 mins  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 mins  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 mins  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ mins  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ mins  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 mins  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 mins  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 mins  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 mins  |
March 20 - 27, 2023