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Berkshire and 3G Capital to Buy Heinz for $23 Billion

dealbook.nytimes.com

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Re: Berkshire and 3G Capital to Buy Heinz for $23 Billion

#6

Post by AlexMuir »

Over the last few months I've been noticing a lot of adverts for Heinz products on the radio. They go like this:

"When I was younger dad would take us out for fish and chips. We'd walk along the canal and feed the ducks, even in the rain. Then I'd unwrap the bag, with the steam rising, and squirt on a dollop of ketchup. And, like always, it has to be Heinz."

I'm always amazed at the ability of brands to sell £0.20 products for £2.00, and the supermarkets who then sell £0.16 products for £1.00 and claim it's value.

I worked for Lucozade (UK Gatorade) for a while. Our total cost, delivered to retailer, of a bottle was 12p. We sold it to them for min 50p and they sold it for at least £1.

Ultimately this is a bet on the longevity of consumer brands, which I think is probably a wise one.

Re: Berkshire and 3G Capital to Buy Heinz for $23 Billion

#8

Post by filvdg »

geraldchan wrote: post #5

The fundamentals of this transaction will be outside the scope of understanding of the HN crowd.

Understanding value investing might be nice if you want to attract VC interest in your start up , taken that most start ups are bought by other companies and don't go IPO (if they don't fail)it might be interesting to understand the fundamentals ...

this one if brand identity for sure

Re: Berkshire and 3G Capital to Buy Heinz for $23 Billion

#10

Post by erock »

AlexMuir wrote: post #6

Over the last few months I've been noticing a lot of adverts for Heinz products on the radio. They go like this: "When I was younger dad would take us out for fish and chips. We'd walk along the canal and feed the ducks, even in the rain. Then I'd unwrap the bag, with the steam rising, and squirt on a dollop of ketchup. And, like always, it has to be Heinz." I'm always amazed at the ability of brands to sell £0.20 pr…

living in the town where Heinz was founded (Pittsburgh, PA) brand loyalty can get a little over the top, we look down on anyplace that doesn't have Heinz ketchup, and years ago when I live in the bay area, I chastised a restaurant because i knew (I just knew!) they watered down the ketchup. Come on, I'm from Pittsburgh, I know my Heinz
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