The buyout of H.J.Heinz by Warren Buffett's Berkshire Hathaway and others have placed many food executives of known brands properly warned that they either shape up or be shipped out. The US$23 billion deal have sent shockwaves in the industry, according to the discussions made during the annual Consumer Analyst Group of New York's get together.
The consensus amongst the attending executives, analysts and investors is that this is again a period of austerity. This can either mean more acquisitions, such as this one or more divestment down the road. The market is already buffeted by weak growth and low margins, because of the tepid demand both locally and overseas. Other factors include changing demographics, constantly changing costs of commodities and competition from low cost manufacturers.
The strategies currently employed include expansion into markets and major cost cuts in the company, which were also utilized to resurrect moribund AmBev into the giant that is now known as Anheuser Busch InBev.
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