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New Heinz CEO presents Whopper of conflict for McDonald's

It is basically the most classic American side: french fries and ketchup. But does it matter what kind of ketchup a fast food restaurant offers its patrons? If consumers do have a condiment preference, then those who frequent McDonald's might notice a change in the taste of their favorite snack.

Heinz Ketchup or any other Heinz product will no longer be offered at McDonald's. Why not? Management has changed at Heinz, a privately held company, and the new CEO has past ties that leaves a bad taste in the mouths of McDonald's management.

McDonald's has decided to dissolve its reported 40-year partnership with Heinz because the condiment giant's new CEO has a history with Burger King. No, he isn't just a fan of the Whopper; he used to be the CEO of Burger King. That history tidbit alone might worry the management of McDonald's that its best interests might be served by seeking its ketchup from a new source. There is another layer of conflict, too. The new firm that invested in Heinz this year also is behind Burger King.

McDonald's has not reported whom its new partner will be. Surely, the company is hoping that its consumers are not as tied to Heinz as they are to the taste of McDonald's fries versus other options. As a result of the recent partnership dissolution, McDonald's will likely want to craft a business contract with the new condiment provider it works with.

We will post an update when there is a development in this business matter.


Source: The Associated Press, "McDonald's ending relationship with Heinz," Sarah Skidmore, Oct. 26, 2013

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