Cantillon: will 57 varieties survive Kraft merger?

Kraft Heinz, the new company formed by the merging of two food staples, began trading yesterday on the New York Stock Exchange.

Heinz, purveyors of 57 varieties, with the red one a constant on most Irish dinner tables, and Kraft, maker of the enduring mac-and-cheese dish in a blue box and now owner of Cadbury, joined forces thanks to the efforts of 3G Capital (co-founded by Brazilian billionaire Jorge Paulo Lemann) and one Warren Buffett.

Mr Buffett’s favourite meal is a cheeseburger (no doubt made with Kraft cheese) and a Cherry Coke (Coca-Cola is another of his major investments).

Mr Buffett's slice of the new blended firm is worth a mouthwatering $24 billion (€21.7 billion), making it his second-biggest investment, ahead of the aforementioned Coca-Cola and IBM but behind Wells Fargo, which stood at $26 billion (€23.5 billion) yesterday.

3G is famous for its cost-cutting, in terms of both products and jobs. Following Kraft’s takeover of Cadbury, it was announced that the company would no longer be making chocolate coins, a horrifying development to fans of the perennial Christmas-stocking favourite.

One wonders whether an axe will be taken to the 57 varieties. But whatever transpires, it’s been a tasty deal for Warren Buffett.