WPP CEO Martin Sorrell has said that the mega merger between food group giants Heinz and Kraft is "cost driven, not revenue driven," according to AdAge.com.
The merger, orchestrated by 3G Capital and Berkshire Hathaway, comes as consumers increasingly shun big brands sold at the center-of-store in favor of fresh foods.
AdAge reports that Sorrell also warned the Advertising Week Europe audience never to underestimate the power of Chinese technology companies, including mobile operators such as Huawei, Xiaomi and OnePlus.
By joining forces, Kraft and Heinz executives expect to squeeze out $1.5 billion in annual cost savings by the end of 2017.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Ciara Mooney.