CEO Bernard Hees replaced after Kraft Heinz’s write down

Kraft Heinz
Kraft Heinz
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The appointment of a new chief executive is attributed to placate adversaries. Miguel Patricio, a veteran of the brewing giant Anheuser-Busch InBev was taken on board, in the wake of a price slump in the stock market value of the business for Kraft Heinz, a food giant among American Food Companies.

The new recruitment was a result of suits from employees and shareholders. Through a regulatory inquiry in February, the company wrote down the value of Kraft and Oscar Mayer brands by $15bn (£11.6bn), it also posted a $12.6bn loss and cut its dividend by 36%. As a consequence, Kraft Heinz has to face legal claims, in addition to the alleged suits. The shareholders attributed the suits to the losses related to the drop in the firm’s stock market value.

Patricio said that the company will benefit from a person with his background, and it will lead the company to a better place in the future. Patricio was working for two decades at Anheuser-Busch and was most recently promoted as the brewer’s global chief marketing officer. Reports suggest Patricio will take the coveted post at Kraft Heinz in July.

After a rough start for Kraft Heinz in 2019, clouds seemed to clear for the food company, when shares in Kraft rose slightly after falling more than 40% over the past year. The decline was due to stalling sales and a cost-cutting drive. Bernard Hees the former chief executive officer of the company will return to 3G Capital, a Brazilian investment company. 3G is a significant shareholder in Kraft Heinz. It allegedly also helped to create the firm through the 2015 merger of HJ Heinz and Kraft Foods.