Heinz is bringing in Burger King CEO Bernardo Hees as its next top executive, signalling what may be the first of many changes planned by the ketchup maker’s new owners.
The Pittsburgh-based company, which also makes baked beans, vinegar and Classico pasta sauce, had announced in February that it was being acquired and taken private by Warren Buffett’s Berkshire Hathaway and 3G Capital.
The firms noted at the time that Berkshire would act as a financing partner while 3G would run the company. The appointment is further evidence that Heinz will be an active investment by 3G, in contrast to Buffett’s traditionally more passive approach.
Hees, who remains a partner at 3G, was installed as CEO of Burger King after the firm bought the struggling hamburger chain in 2010.
3G, an investment firm run by Brazilian billionaires, has since slashed costs, revamped the chain’s menu and launched a major marketing campaign intended to help it pose a greater threat to longtime rival McDonald’s. The moves set the groundwork for Burger King’s return to the stock market last spring in a deal that allowed 3G to more than recoup its investment in the chain. 3G remains the majority owner.
3G’s strategy of aggressive cost-cutting and overhauling at companies had prompted speculation that H.J. Heinz Co. could be in store for a major shakeup. To ease concerns among employees, Heinz and 3G noted when the deal was announced that Heinz was different because it’s a relatively healthy business. But the radical changes Hees oversaw at Burger King Worldwide Inc. during his short tenure could nevertheless be a clue for what’s in store for the 144-year-old company.
At the fast-food chain’s headquarters in Miami, for example, executive offices were eliminated in favour of open spaces. Hees sits at a desk right outside the elevators on the seventh floor, appearing almost like a receptionist, flanked by his executive lieutenants.
A big board in front of their desks is updated with daily reports on sales and customer traffic globally and by region. Executives, including Hees, have colour-coded boards by their desks displaying their annual goals. The idea is that everyone at the company can see each other’s goals.
For now, Hees will remain CEO of Burger King and Bill Johnson will remain CEO of Heinz until the deal is done. Johnson, who has been CEO for the past 15 years, noted when the deal was announced that he had not discussed his future at the company with its new owners.
