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Buy. Squeeze. Repeat.
Article

Buy. Squeeze. Repeat.

The Brazilian Investors Who Control Kraft Heinz Are Applying Their Proven Formula to Construct a New Global Food Colossus. What Will They Buy Next?

Fortune, 2017

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Editorial Rating

8

Qualities

  • Comprehensive
  • Eye Opening
  • Background

Recommendation

Do you remember the Wienermobile – the 27-foot-long, 11-foot-high metal hot dog on wheels that blasts the Oscar Mayer Weiner Jingle as it passes you by? Well, it’s got a new driver: The Brazilian private equity firm 3G Capital has taken the wheel and is steering Kraft Heinz in a new direction. Fortune editor Geoff Colvin untangles the complex web of food company acquisitions and pays close attention to the grab-and-slash tactics of 3G. Colvin gives a clear and fair assessment of 3G’s strategy, economic effects, obstacles and future. getAbstract recommends his analysis to global economy enthusiasts, stock market investors and bologna fans.

Take-Aways

  • When Brazilian private equity group 3G Capital bought food firm Heinz Kraft, it immediately cut costs, fired executives and began closing factories.
  • Starting in 1989, 3G purchased one beer company after another. Today, it controls close to one-third of the world’s beer production.
  • The enormous success of 3G is due to its two-pronged, razor-sharp focus on management and new acquisitions.

About the Author

Geoff Colvin is a broadcaster, speaker and Fortune editor.