Fast and the Furious- three full geometric change in the situation of food acquisition Heinz Dragon.docVIP

 PAGE \* MERGEFORMAT 4 Fast and the Furious: three full geometric change in the situation of food acquisition Heinz Dragon More than a year of three legendary full-Heinz’s acquisition of Dragon food has become a reality. Heinz said in a press release, Heinz operating in China Dragon sell frozen food business decisions, reflecting Heinz to focus on, including China, emerging markets, “Sauces and condiments” and “infant food and nutrition” business strategy, but also with “dilution of non-core U.S. market frozen food business” Heinz consistent global strategy, which really is Heinz sale Dragon and the reasons for it? In fact, Heinz is to sell dragon dragon and phoenix lost a loss of focus to the main business at Heinz could not carry longer regard the continued loss of the Dragon. Frozen food industry because the industry characteristics, to operate on, need low production, cold chain supply, there is a huge channel costs, occupy large enterprise funds, the industry has been relatively concentrated, the market is big product of the contest, intense competition has made Product gross margin has been watered down, dragon and phoenix in the layout above, are too scattered, therefore, compared to competitors is no advantage from the cost of production, it can not form a regional synergies, costs can not be assessed, therefore, a loss is inevitable, while spices and baby cereal and high profits, and competition is relatively weak, if you focus on Heinz condiments and baby rice, the overall return on investment will increase, which would prop up share prices, making shareholders more profitable, on the contrary , if it continues in the frozen food on fighting, it will pull low price, while the dragon for three whole strategy is an excellent tool, not only to strengthen its national distribution, it can blow the thoughts and intentions of Wan Chai Ferry Pier, a large competitor will buy The buyer is higher bid for Buffett is concerned, the whole deal sale Fong Food