Kraft Heinz shares fall after key investor dumps holdings

Regional News
Heinz

FILE- This Feb. 21, 2018, file photo shows a display of Heinz Ketchup on display in a market in Pittsburgh. Kraft Heinz Co. is bringing back its former chief financial officer amid accounting problems and falling sales. Paulo Basilio, joined H.J. Heinz as CFO in 2013 and remained in the job after the company’s 2015 merger with Kraft. He most recently served as Kraft Heinz’s chief business development officer. (AP Photo/Gene J. Puskar, File)

NEW YORK (AP) — Kraft Heinz Co. shares are sliding after one of the company’s top investors sold 25 million shares.

3G Capital — a Brazilian private equity firm — reduced its stake in the company by 9%. 3G remains the company’s second-largest shareholder.

3G partnered with Berkshire Hathaway Inc. to combine Kraft and Heinz in 2015.

But the maker of Heinz ketchup, Jell-O and Velveeta cheese has struggled with competition from store brands and consumers’ migration to healthier, less-processed foods. Berkshire chief Warren Buffett has said his firm overpaid for Kraft.

Earlier this year, the company slashed the value of its Oscar Meyer and Kraft brands by $15.4 billion. It also restated financial results after an investigation by the U.S. Securities and Exchange Commission.

Kraft Heinz shares fell 4% to $28.43 in morning trading.

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories

Don't Miss