Warren Buffett’s Successor Eyes Selling Off 325-M Kraft Heinz Shares

Warren Buffett’s successor appears to be considering his first major move after taking over as CEO this month.

Greg Abel appears to be charting a different course on Kraft Heinz. (Photo: Horatio Alger Association of Distinguished Americans, Inc.) 

Kraft Heinz consequently warned investors that Berkshire Hathaway may be interested in selling its 325 million shares in the food giant that Buffett helped create in 2015, Josh Funk reported for the Associated Press (AP).

The disclosure appeared in a filing with stock market regulators. Buffett and Brazilian investment firm 3G Capital orchestrated the merger of Kraft and Heinz after acquiring Heinz, betting on the strength of the companies’ brands.

Greg Abel now appears to be charting a different course.

Over the years, Buffett acknowledged that Kraft Heinz’s competitive moat was not as strong as he had anticipated, as consumers increasingly shifted toward store brands and away from processed foods.

Berkshire Hathaway took a $3.76 billion writedown on its Kraft Heinz stake last summer.

Buffett said last fall that he was disappointed with Kraft Heinz’s plan to split the company in two, and Berkshire’s two representatives resigned from the company’s board last spring.