|Kraft and Heinz Unite Their Iconic Brands
By: Cindy Wendland
What is better than one strong family of brands? An extended family of brands. Kraft and Heinz just announced the merger of their two companies, which is expected to be completed later this year. When they merge, they will create the third-largest food and beverage company in the U.S.
Good mergers expect to reduce costs and increase profits. In this merger, the companies expect to shave $1.5 billion in costs out of their systems. Increased profits can come from synergies and increased market share. They can also come from new product introductions from combined products.
Kraft and Heinz will have a lot of brands to play with for new product development — Velveeta, Planters, Jell-O, Kool-Aid, Maxwell House, Ore Ida, Philadelphia Cream Cheese, and more. Imagine cheesy peanuts, Jell-O-filled tater tots, cream cheese coffee, and Lea & Perrins–flavored mayo. OK, perhaps it’s a good thing these combinations are not on their product development idea list. The point is, they have so many strong brands they can combine in so many variations. It would be fun just to create them all. A few of them have to be good!
Cindy Wendland has a background in marketing and finance. She is the creative director for an online men's health magazine, BrainBrawnBody.com, and she gets to write their leisure/travel blog. She is also a web designer helping her clients with online community engagement, websitesbywendland.com. Prior to her web years, she worked in pharmacy consulting.
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