Big Food Just Gets Bigger - Rabin Worldwide


Big Food Just Gets Bigger

big food


The food industry in the Unites States is growing, with the greatest growth stemming from the largest food companies. Most consumers are surprised to learn that some of their favorite brands are owned by six giant food companies- Pepsico, Dole, General Mills, Nestle, Heinz and Kraft.

For example, PepsiCo reaches far beyond the realm of soda. Yes, it owns Gatorade and SoBe, but it also, through Frito Lay, owns a massive quantity of food brands — such as Quaker and Stacy’s Pita Chips Company. Dole Food Company is the word’s largest producer of fruits and vegetables and owns plantations all over Central America, South America, and the Philippines. General Mills has broken into the organic and natural food realm, and owns Cascadian Farm, Muir Glen and Larabar.

Not only are these big food companies gobbling up smaller brands, they are growing larger by merging with each other. For example, it’s common knowledge that 3G Capital and Berkshire Hathaway have Heinz buying Kraft and merging the two companies together. In 2013, Heinz was taken private by 3G and Berkshire. Kraft, on the other hand, has not drummed up as much private investment and demonstrated a slower growth pattern. With an influx of $10 billion in capital from 3G and Berkshire, the newly formed Kraft Heinz Co., a publicly traded company, will have a value estimated at $100 billion. Expect to see additional plant closures, budgets squeezed, and many jobs cut — all these elements coming together under a hardcore cost-cutting agenda.