On Friday Oct. 25, McDonald’s released a statement announcing the end of a 40-year-long supply relationship between the fast-food giant and the condiment company. McDonald’s pointed to recent management changes as the cause of the change. Heinz recently appointed Bernardo Hees, the former CEO of Burger King Worldwide and a current board member, as its new chief executive.
McDonald’s patrons probably won’t taste much of a change, however, as Heinz ketchup is only used in Pittsburgh and Minneapolis restaurants, according to the Washington Post. Most of McDonald’s ketchup products are produced by McDonald’s under a private label. Heinz, however, may feel losses overseas as a result of the end of the partnership. McDonald’s has 66 percent of its business overseas and it is there that Heinz has benefited the most from working with McDonald’s. This could be especially troubling for Heinz since they are looking to expand their international business.
Luckily for Heinz, McDonald’s is only a part of Heinz’s business. The company sells roughly 650 million bottles of ketchup per year worldwide, and that not including bulk sales to fast-food restaurants. Heinz is also far more than just a ketchup company. It also produces a variety of other sauces and foods including baked beans, vinegar, and “Smart Ones” diet foods.