Seeking Alpha

McDonald's looking around for new ketchup supplier

  • McDonald's (MCD +0.1%) will stop buying ketchup from Heinz after watching ex-Burger King CEO Bernando Hees get tapped for the top job at the company.
  • The change will affect McDonald's outlets in global markets more than the U.S.
  • Presumably, Del Monte Foods and ConAgra (CAG +0.5%) could now be in the mix to supply McDonald's with ketchup.
Comments (41)
  • wigit5
    , contributor
    Comments (3938) | Send Message
     
    Umm this is a bad move $MCD
    25 Oct 2013, 12:59 PM Reply Like
  • Copious28
    , contributor
    Comments (368) | Send Message
     
    No kidding. I wont eat there if they dont have Heinz. Or more importantly, my kids wont eat there...
    25 Oct 2013, 01:04 PM Reply Like
  • wigit5
    , contributor
    Comments (3938) | Send Message
     
    My wife is furious now that I told her lol, she won't touch burgers/fries without heinz...
    25 Oct 2013, 01:07 PM Reply Like
  • RWMostow
    , contributor
    Comments (1324) | Send Message
     
    Wigit and all-

     

    I fail to see the connection between who is the honcho at Heinz, and the ketchup brand.

     

    Didn't Mr. Buffett just purchase Heinz? If yes, that makes the pick for the top job at Heinz all the more irrelevant.

     

    Agreed: If it is not Heinz, then it is not Ketchup!

     

    -rwm
    25 Oct 2013, 03:02 PM Reply Like
  • wigit5
    , contributor
    Comments (3938) | Send Message
     
    Not sure I understand you RWM but I think $MCD is worried that a former fierce competitor will be difficult to deal with as the head of one of its suppliers. Mr. Buffet did just buy Heinz but just a few weeks ago Buffet said most of the subs they own are self reliant and he doesn't manage hardly.
    25 Oct 2013, 04:59 PM Reply Like
  • RWMostow
    , contributor
    Comments (1324) | Send Message
     
    Wigit-

     

    "Hardly" is the operative word.

     

    I doubt Mr. Buffett would publicly state that he had called the head of Heinz, for example, and urged him/her to be nice to MCD.

     

    Just my opinion.

     

    -rwm
    26 Oct 2013, 10:29 AM Reply Like
  • jmjjmj1
    , contributor
    Comments (149) | Send Message
     
    heinz is the only ketchup
    25 Oct 2013, 01:06 PM Reply Like
  • Olsjoy
    , contributor
    Comments (7) | Send Message
     
    Independent investor and shareholder of MCD.
    This doesn't make ANY sense! Heinz Ketchup is very important to their fries and they've got it just right. Why endanger such a great
    "frenchise" for such an odd reason?
    25 Oct 2013, 01:06 PM Reply Like
  • gatorj
    , contributor
    Comments (14) | Send Message
     
    because, as we have seen time after time, there is no law against stupidity. There is a difference between other brands and Heinz. I will have to bring my own ketchup with me when I go to MacDonalds. OR, I will go to burger king,where I can still get my favorite Heinz.
    27 Oct 2013, 10:02 AM Reply Like
  • financeminister
    , contributor
    Comments (610) | Send Message
     
    Wow, didn't know folks are so attached to their ketchup.
    25 Oct 2013, 01:10 PM Reply Like
  • wigit5
    , contributor
    Comments (3938) | Send Message
     
    there is a cult following stronger then $AAPL
    25 Oct 2013, 01:13 PM Reply Like
  • plumber108
    , contributor
    Comment (1) | Send Message
     
    No joke, we're talking about ketchup? Guess customers are buying the cheeseburger for the ketchup, instead of the paper thin beef patty.

     

    CAG is a strong company.
    25 Oct 2013, 01:28 PM Reply Like
  • financeminister
    , contributor
    Comments (610) | Send Message
     
    must be a first world problem
    25 Oct 2013, 02:56 PM Reply Like
  • financeminister
    , contributor
    Comments (610) | Send Message
     
    bet if the labels were the same, most people couldn't tell the difference unless you're a die hard ketchup fan kind'a like coke and pepsi (which BTW, I can tell the difference but won't quit my favorite fastfood joints if they switch their cola suppliers).
    25 Oct 2013, 02:58 PM Reply Like
  • dazman91
    , contributor
    Comments (13) | Send Message
     
    People can tell the difference. Believe me. Even kids. Heinz makes Ketchup, all else make Catsup. Huge Difference!
    25 Oct 2013, 03:37 PM Reply Like
  • financeminister
    , contributor
    Comments (610) | Send Message
     
    lol catsup
    25 Oct 2013, 03:53 PM Reply Like
  • gatorj
    , contributor
    Comments (14) | Send Message
     
    I no longer order soda with my Papa Johns pizza, due to the selling out to Pepsi. I would really like to know the terms of the deal Papa Johns got to dump Coca Cola.
    27 Oct 2013, 10:02 AM Reply Like
  • Chazuu
    , contributor
    Comments (116) | Send Message
     
    Is this a serious posting? I can't believe that MCD would change suppliers for such as reason.
    25 Oct 2013, 01:17 PM Reply Like
  • DAG1996
    , contributor
    Comments (3059) | Send Message
     
    Perhaps consider that the ex-CEO of any company is very likely to retain very close ties with that company and possess intimate knowledge of "trade secrets", and such information often has to be shared in both directions between suppliers and customers.

     

    In the end, the change will make zero difference, except to Heinz and the new supplier ... some may consider the brand name on a condiment very important, but the vast majority of McDonald's customers will never even realize or care that a change has occurred.
    25 Oct 2013, 01:31 PM Reply Like
  • Chazuu
    , contributor
    Comments (116) | Send Message
     
    My wife won't think of any ketchup other than Heinz. She buys the two pack of the large economy size.
    25 Oct 2013, 01:19 PM Reply Like
  • SaltyDog62
    , contributor
    Comments (698) | Send Message
     
    This has got to be an early April Fools joke. Heinz is truly the best ketchup!
    25 Oct 2013, 01:26 PM Reply Like
  • walike
    , contributor
    Comments (2) | Send Message
     
    GOOD. I was a fan of the founder of Heinz but not of his grand-daughter or her husband. The founder was a hard working conservative gentleman who did a lot for Polish identity and pride. His grand daughter has done nothing in my humble opinion. And, her husband even less.
    25 Oct 2013, 01:28 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (531) | Send Message
     
    She no longer owns anything related to HJ Heinz Co. Heinz is now owned by Oracle; the one in Omaha that is.
    25 Oct 2013, 01:42 PM Reply Like
  • Elevator Music
    , contributor
    Comments (28) | Send Message
     
    Warren Buffett purchased all of Heinz earlier this year, the family is no longer involved in the business.
    25 Oct 2013, 04:15 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2794) | Send Message
     
    I read the "organic" McD's ketchup in Canada, as in China it is full of MSG!
    25 Oct 2013, 01:33 PM Reply Like
  • Trader 611
    , contributor
    Comments (56) | Send Message
     
    Heinz ketchup is loaded with high fructose corn syrup, the crack cocaine of sugar.
    Don't worry, it's good for you!
    25 Oct 2013, 02:37 PM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    According to Mcdonalds.ca or whatever the ingredients mentioned are very healthy
    26 Oct 2013, 09:04 AM Reply Like
  • TheHeat
    , contributor
    Comment (1) | Send Message
     
    I have a two word solution to this problem. BROOKS KETCHUP!!!!
    25 Oct 2013, 02:57 PM Reply Like
  • RWMostow
    , contributor
    Comments (1324) | Send Message
     
    TheHeat-

     

    Never heard of Brooks. Is it a regional product? Publicly traded?

     

    Thanks.

     

    -rwm
    25 Oct 2013, 03:05 PM Reply Like
  • jmjjmj1
    , contributor
    Comments (149) | Send Message
     
    Simply heinz no HFC, just the same old product from when we were kids and yes ketchup matters...I would not eat MCD if you paid me sooo
    25 Oct 2013, 03:37 PM Reply Like
  • Dividend Growth Machine
    , contributor
    Comments (1446) | Send Message
     
    I find it amusing that some people are saying they won't eat at McDonald's anymore if they don't serve Heinz ketchup. If you read the article, it states that in the U.S., "Heinz ketchup has been served in McDonald's restaurants only in the Pittsburgh and Minneapolis markets." That's why the summary indicates that global markets will be more affected.
    25 Oct 2013, 05:21 PM Reply Like
  • wigit5
    , contributor
    Comments (3938) | Send Message
     
    hmm the heinz packets they hand out at the locale MCDs in North East TN must be bucking the rule then... Are franchises vs corporate stores different
    25 Oct 2013, 05:26 PM Reply Like
  • Dividend Growth Machine
    , contributor
    Comments (1446) | Send Message
     
    Good point. Maybe they're referring only to corporate stores?
    25 Oct 2013, 05:36 PM Reply Like
  • wigit5
    , contributor
    Comments (3938) | Send Message
     
    Possibly the to go packets we got the other day were heinz but perhaps the ketchup they use for eat in is some generic... not really sure

     

    I dont really care personally but my wife is very much heinz fan lol
    25 Oct 2013, 05:53 PM Reply Like
  • First OJ
    , contributor
    Comments (3) | Send Message
     
    All the McDonald s. I've seen have packets that say Heinz.
    And that's not Pittsburgh or Minneapolis.
    26 Oct 2013, 12:34 PM Reply Like
  • jumpnjoey77
    , contributor
    Comments (468) | Send Message
     
    Petty.
    25 Oct 2013, 06:32 PM Reply Like
  • SSnape
    , contributor
    Comments (405) | Send Message
     
    I have not and will not use a Heinz product since I was "handed my hat" by Mr. Buffet after bring a Heinz shareholder for MANY years.Go CAG!

     

    Long:CAG.
    26 Oct 2013, 01:23 AM Reply Like
  • RWMostow
    , contributor
    Comments (1324) | Send Message
     
    FWIW: I just looked up CAG on Yahoo Finance. Divi: 3.2%. Friday's price indicates that more DD is appropriate.

     

    -rwm
    26 Oct 2013, 10:41 AM Reply Like
  • RWMostow
    , contributor
    Comments (1324) | Send Message
     
    No one has answered my question: "What is Brooks Ketchup?"

     

    So I went to Google.

     

    Brooks is a brand of Birds Eye Foods, Inc. The web site that I viewed stated that Brooks has a more tangy flavor than Heinz.

     

    So, I for one, will check it out and possibly report back.

     

    -rwm
    26 Oct 2013, 10:38 AM Reply Like
  • bunionboy
    , contributor
    Comments (2) | Send Message
     
    If MCD's ketchup policies affect your emotional state, just imagine the pickle you'd be in if they ever decide to change suppliers of, uh..... pickles!
    26 Oct 2013, 12:27 PM Reply Like
  • PACKER man
    , contributor
    Comments (100) | Send Message
     
    "Much ado about nothing", to coin a phrase! Get over it, ok? Ask for extra packets of "catsup" when you are at "Bugger King" for coffee and then take them along to MCD when you go there for the good stuff...
    1 Nov 2013, 06:31 PM Reply Like
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