Stunning Big Brand Losses
Today’s news article Buffett Set to Lose $4B as Kraft Heinz Stock Tanks explains the Kraft Heinz dramatic valuation and stock losses. It states the losses are due in part to shifting consumer buying trends. There’s a growing awareness that we need to eat more natural foods and less processed foods. The following is part of the news article (emphasis in bold is mine):
“Kraft Heinz Co. plummeted the most on record Friday, one day after writing down the value of some of its best-known brands by $15.4 billion, an acknowledgment that changing consumer tastes have destroyed the value of some of the company’s most iconic products.
“The packaged-food giant’s charge to reduce the goodwill value of the Kraft and Oscar Mayer trademarks and other assets came with disappointing fourth-quarter earnings and … a net loss of $12.6 billion, or $10.34 a share…
“Kraft Heinz’s portfolio plays mainly in the center of the grocery store, an area hit hard by secular shifts in eating and shopping habits, and the one at greatest risk of being disrupted by Amazon.com Inc.
“As a result, Buffett reportedly stands to lose more than $4 billion in a single day because of the carnage in the stock of the Chicago packaged food giant (KHC), whose products include Heinz Tomato Ketchup, Jell-O and Kraft Macaroni & Cheese and. …competes with General Mills and Kellogg Co.”
Read Newsmax: Kraft Heinz Discloses SEC Probe, $15 Bln Write-down; Shares Dive 20 Pct | Newsmax.com