29 Oct 2013

McDonald's and Heinz part company

2:19 pm on 29 October 2013

McDonald's has ditched Heinz ketchup from its stores worldwide, ending a 40 year relationship.

McDonald's has admitted it's reacting to Heinz appointing the former head of rival Burger King, Bernardo Hees, as its new boss.

In February, Warren Buffett's Berkshire Hathaway together with Brazil's 3G Capital, took over Heinz in a $US28 billion deal.

That move brought Heinz closer to Burger King which is controlled by 3G.

Ian Henderson from marketing firm AML Group says a decision like this one would not have been taken impulsively - he says it's a risk assessment process.

"They'll have looked at the risks of having this potential spy in the camp versus the advantages of having Heinz on the table in the restaurants and made the decision."