The Hatchet Men And The Hot Dog
Bloomberg Businessweek|August 07, 2017

Let’s be frank. 3G Capital is known for doing exactly one thing well: Ruthlessly cutting costs. Will its reinvention of the Oscar Mayer wiener change that?

Bryan Gruley and Craig Giammona
The Hatchet Men And The Hot Dog

A year ago, Kraft Heinz Co. had a hot dog problem. Not only was it selling fewer Oscar Mayer wieners, not only was it losing sales to rivals, but the U.S. market was conspicuously contracting. Jokes about mystery meat are a given in the hot dog business, but this was different. Americans had actually grown uneasy about eating hot dogs and giving them to their kids.

This was unacceptable to Bernardo Hees, the boisterous Brazilian who had been chief executive of Kraft Heinz for barely a year, since ketchup king H.J. Heinz Co. and mac-and-cheese icon Kraft Foods Inc. merged in a $55 billion deal in July 2015. So Hees (pronounced “hess”) ordered a recast of Oscar Mayer’s signature product. The company would pour millions of dollars into getting the reformulated dogs ready for Memorial Day 2017, the unofficial summer kickoff.

It wasn’t quite Tim Cook demanding an overnight redo of the iPhone; more like Ford Motor Co. pushing a revival of the Taurus sedan. But Kraft Heinz is controlled by the private equity firm 3G Capital, which is known less for nurturing growth at the companies it buys than for firing people, shutting factories, and taking cost-cutting to exceptional lengths. Typically, 3G’s strategy for expansion when it buys a company is to purchase another and start in again with cost cuts.

Denne historien er fra August 07, 2017-utgaven av Bloomberg Businessweek.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra August 07, 2017-utgaven av Bloomberg Businessweek.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA BLOOMBERG BUSINESSWEEKSe alt
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