Millennium Post

McDonald’s to leave Heinz as it suspects Burger King fling

McDonald’s has announced that it is dropping ketchup king Heinz as a supplier of the key hamburger condiment, citing management changes at Heinz that put the company closer to rival Burger King. McDonald’s has said that it is ending a relationship of over 40 years as it axed Heinz from its supplier list.

‘As a result of recent management changes at Heinz, we have decided to transition our business to other suppliers over time,’ it said.

In February US investment star Warren Buffett’s Berkshire Hathaway together with Brazil’s 3G Capital took over Heinz in a $28 billion deal. That move brought Heinz closer to Burger King, which is controlled by 3G.

The change would not be a large blow to Heinz. McDonald’s said it only used Heinz ketchup in two US markets, Minneapolis and Pittsburgh, as well as some foreign markets.

McDonald’s said in a statement that it would work with Heinz ‘to ensure a smooth and orderly transition of the McDonald’s restaurant business’.

The company said ‘we are confident that there will be no impact to our business, our customers and our great tasting food at McDonald’s.’

Meanwhile, Burger King, which claims to be the second largest fast food hamburger chain in the world, says it is still exploring the India market but as of now no openings are scheduled.

‘We’re still exploring the India market. However, there are no openings scheduled at this point. As always, we’re more than happy to share news with you when we have it,’ the Miami (Florida)-based company said in an e-mail response.

The company did not directly confirm or deny media reports that it will soon enter India through a franchising partnership with a company majority owned by private equity firm Everstone.

Media reports have also stated that Burger King’s India venture will be spearheaded by Rajeev Varman, the chief executive of Burger King in the UK.

Founded in 1954, Burger King, which is famous for its ‘Whopper’ sandwich, claims to serve more than 11 million patrons around the world every day.

In 2010 3G Capital, a global multi-million dollar investment firm, purchased Burger King Corporation, making it a privately-held company.
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