McDonald's to cut out Heinz ketchup out of its system

28 Oct 2013

McDonald's Corp said on Friday that it planned to end its 40-year relationship with ketchup maker HJ Heinz Co, after Bernardo Hees, the former chief executive of hamburger rival Burger King Worldwide Inc, took charge at Heinz.

"As a result of recent management changes at Heinz, we have decided to transition our business to other suppliers over time," McDonald's said in a statement.

"We have spoken to Heinz and plan to work together to ensure a smooth and orderly transition," McDonald's, with over 34,000 restaurants around the globe added.

According to commentators, the switch would be more apparent overseas than in the US, as McDonald's only served Heinz ketchup in two domestic markets - Pittsburgh and Minneapolis, the Pittsburgh Post-Gazette reported.

They add, the move could benefit Heinz ketchup rivals Hunt's, owned by ConAgra Foods Inc, and Del Monte Corporation.

Burger King went public in June 2012, less than two years after 3G Capital Management LLC, which retains a stake in the fast-food chain took it private.

Burger King, a Heinz customer for "decades" uses its products in roughly 80 per cent of markets around the world, according to spokesman Miguel Piedra who spoke to  Reuters.

The move would finally put an end to a years-long push by Heinz officials for regaining ground with the restaurant giant that operated from over 34,000 locations around the globe, although most American customers buying Big Macs are not getting Heinz ketchup with their fries anyway.