Latest / Omni Talk Retail / Why Kraft Heinz's $20 Billion Breakup Could Save the Food Giant | Fast Five Shorts

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Why Kraft Heinz's $20 Billion Breakup Could Save the Food Giant | Fast Five Shorts · Omni Talk Retail

• 0:00
  Kraft
• 0:00
  Heinz
• 0:00
  is
• 0:01
  preparing
• 0:01
  to
• 0:01
  break
• 0:01
  itself
• 0:02
  up
• 0:02
  a
• 0:02
  decade
• 0:03
  after
• 0:03
  an
• 0:03
  infamous
• 0:04
  merger
• 0:04
  of
• 0:05
  the
• 0:05
  two
• 0:05
  biggest
• 0:05
  names
• 0:06
  in
• 0:06
  packaged
• 0:06
  foods
• 0:07
  that
• 0:07
  was
• 0:07
  orchestrated
• 0:08
  by
• 0:08
  Warren
• 0:08
  Buffett
• 0:09
  and
• 0:09
  Brazilian
• 0:10
  private
• 0:10
  equity
• 0:10
  firm
• 0:11
  3G
• 0:11
  Capital
• 0:11
  Partners.
• 0:12
  According
• 0:12
  to
• 0:12
  the
• 0:13
  Wall
• 0:13
  Street
• 0:13
  Journal,
• 0:13
  Kraft
• 0:14
  Heinz
• 0:14
  is
• 0:14
  planning
• 0:14
  to
• 0:14
  spin
• 0:15
  off
• 0:15
  a
• 0:15
  large
• 0:15
  chunk
• 0:15
  of
• 0:15
  its
• 0:16
  grocery
• 0:16
  business,
• 0:17
  including
• 0:17
  many
• 0:17
  craft
• 0:18
  products,
• 0:18
  into
• 0:18
  a
• 0:19
  new
• 0:19
  entity
• 0:19
  that
• 0:19
  could
• 0:20
  be
• 0:20
  valued
• 0:20
  as
• 0:21
  much
• 0:21
  as
• 0:22
  $20
• 0:22
  billion
• 0:23
  on
• 0:23
  its
• 0:23
  own,
• 0:23
  according
• 0:24
  to
• 0:24
  people
• 0:24
  familiar
• 0:25
  with
• 0:25
  the
• 0:25
  matter.
• 0:26
  That
• 0:26
  would
• 0:26
  leave
• 0:26
  a
• 0:26
  company
• 0:27
  housing
• 0:27
  goods
• 0:27
  such
• 0:28
  as
• 0:28
  sauces
• 0:28
  and
• 0:28
  spreads
• 0:29
  like
• 0:29
  Heinz
• 0:29
  namesake
• 0:30
  ketchup
• 0:31
  and
• 0:31
  Dijon
• 0:31
  mustard
• 0:32
  brand
• 0:32
  Gray
• 0:33
  Poupon.
• 0:34
  The
• 0:34
  company
• 0:34
  has
• 0:34
  given
• 0:35
  priority
• 0:35
  to
• 0:35
  its
• 0:36
  faster
• 0:36
  going
• 0:36
  offerings
• 0:36
  like
• 0:37
  hot
• 0:37
  sauces,
• 0:37
  dressings
• 0:38
  and
• 0:38
  condiments,
• 0:39
  which
• 0:39
  are
• 0:39
  more
• 0:39
  in
• 0:39
  line
• 0:39
  with
• 0:40
  consumer
• 0:40
  preferences
• 0:41
  than
• 0:41
  processed
• 0:42
  lunch
• 0:42
  meats
• 0:43
  and
• 0:43
  cheeses.
• 0:43
  It
• 0:44
  hopes
• 0:44
  the
• 0:44
  two
• 0:45
  separate
• 0:45
  units
• 0:45
  could
• 0:46
  be
• 0:46
  in
• 0:46
  total
• 0:47
  more
• 0:47
  than
• 0:47
  KRAFT
• 0:47
  Heinz,
• 0:48
  roughly
• 0:48
  $31
• 0:49
  billion
• 0:50
  market
• 0:50
  value
• 0:51
  currently.
• 0:51
  Chad,
• 0:52
  what
• 0:52
  is
• 0:52
  your
• 0:53
  assessment
• 0:53
  of
• 0:53
  the
• 0:53
  Kraft
• 0:54
  Heinz
• 0:54
  breakup
• 0:55
  and
• 0:55
  what
• 0:55
  is
• 0:55
  the
• 0:56
  potential,
• 0:56
  potential
• 0:56
  value
• 0:56
  creation
• 0:57
  given
• 0:57
  as
• 0:58
  the
• 0:58
  rationale?
• 1:00
  So
• 1:00
  first
• 1:00
  of
• 1:00
  all,
• 1:01
  it's
• 1:01
  a
• 1:01
  pretty
• 1:01
  big
• 1:01
  week
• 1:02
  for
• 1:02
  food
• 1:02
  M
• 1:03
  and
• 1:03
  A
• 1:03
  overall.
• 1:04
  I
• 1:05
  believe
• 1:05
  this
• 1:05
  was
• 1:06
  just
• 1:06
  a
• 1:06
  day
• 1:07
  after
• 1:07
  Ferrero
• 1:08
  announced
• 1:08
  the
• 1:09
  deal
• 1:09
  to
• 1:09
  buy
• 1:09
  Kellogg
• 1:10
  serial
• 1:11
  division.
• 1:11
  Right.
• 1:14
  Listen,
• 1:14
  in
• 1:14
  this
• 1:15
  case,
• 1:15
  the,
• 1:15
  the
• 1:16
  massive
• 1:16
  devaluation
• 1:17
  that's
• 1:18
  occurred
• 1:18
  since
• 1:18
  the
• 1:18
  Kraft
• 1:19
  Heinz
• 1:19
  merger
• 1:20
  is,
• 1:20
  is
• 1:20
  stuff
• 1:20
  of
• 1:21
  legend,
• 1:21
  right?
• 1:22
  So
• 1:23
  am
• 1:23
  I
• 1:23
  surprised
• 1:24
  to
• 1:24
  see
• 1:24
  this,
• 1:24
  like,
• 1:25
  especially
• 1:25
  in
• 1:25
  this
• 1:26
  current
• 1:26
  era
• 1:27
  of
• 1:28
  pretty
• 1:28
  massive
• 1:28
  portfolio
• 1:29
  shaping
• 1:30
  and
• 1:30
  reshaping
• 1:31
  across
• 1:31
  food
• 1:31
  and
• 1:31
  Bev
• 1:32
  cpg?
• 1:32
  No,
• 1:33
  not
• 1:33
  at
• 1:33
  all.
• 1:34
  Your
• 1:34
  question
• 1:34
  is,
• 1:34
  will
• 1:35
  it
• 1:35
  work?
• 1:35
  Right,
• 1:35
  Right.
• 1:37
  You
• 1:37
  know,
• 1:37
  listen,
• 1:38
  the
• 1:38
  theory
• 1:38
  of
• 1:39
  M
• 1:39
  and
• 1:39
  A
• 1:40
  is
• 1:40
  painfully
• 1:41
  simple
• 1:42
  when
• 1:42
  you
• 1:42
  break
• 1:43
  it
• 1:43
  down.
• 1:43
  Even
• 1:43
  though
• 1:43
  it's
• 1:44
  kind
• 1:44
  of
• 1:44
  painful
• 1:44
  to
• 1:45
  make
• 1:45
  work,
• 1:45
  you
• 1:45
  need
• 1:45
  to
• 1:46
  make
• 1:46
  the
• 1:46
  move
• 1:46
  that
• 1:46
  adds
• 1:47
  value.
• 1:48
  And
• 1:48
  so
• 1:48
  the
• 1:49
  numbers
• 1:49
  that
• 1:49
  are
• 1:49
  being
• 1:49
  stated
• 1:50
  out
• 1:50
  in
• 1:50
  the
• 1:50
  article
• 1:50
  are,
• 1:51
  wow,
• 1:51
  we
• 1:51
  break
• 1:51
  it
• 1:51
  up,
• 1:52
  it's
• 1:52
  worth
• 1:52
  more
• 1:53
  than
• 1:53
  it
• 1:53
  is
• 1:53
  together.
• 1:54
  How
• 1:54
  does
• 1:54
  that
• 1:54
  work?
• 1:54
  Right.
• 1:55
  So
• 1:56
  you
• 1:56
  know
• 1:56
  it's
• 1:56
  the
• 1:57
  inverse
• 1:57
  of,
• 1:57
  of
• 1:58
  an
• 1:58
  acquisition
• 1:58
  deal,
• 1:58
  right.
• 1:59
  If
• 1:59
  you're
• 1:59
  acquiring,
• 2:00
  you're
• 2:00
  betting
• 2:00
  on
• 2:02
  being
• 2:02
  able
• 2:02
  to
• 2:02
  disproportionately
• 2:04
  grow
• 2:04
  something
• 2:04
  more
• 2:05
  faster
• 2:05
  than
• 2:06
  it
• 2:06
  otherwise
• 2:06
  could
• 2:07
  or
• 2:07
  grow
• 2:08
  the
• 2:08
  same
• 2:08
  at
• 2:08
  a
• 2:09
  higher
• 2:09
  profit
• 2:09
  margin.
• 2:09
  Otherwise
• 2:10
  you're
• 2:10
  paying
• 2:11
  for
• 2:11
  it
• 2:11
  in
• 2:11
  the
• 2:11
  purchase
• 2:12
  price.
• 2:12
  That's
• 2:13
  what
• 2:13
  Ferrero
• 2:13
  is
• 2:14
  banking
• 2:14
  on.
• 2:14
  By
• 2:15
  taking
• 2:15
  those
• 2:15
  slower
• 2:16
  moving
• 2:16
  cereal
• 2:17
  brands
• 2:17
  from
• 2:17
  kellogg.
• 2:18
  That's
• 2:18
  what
• 2:18
  J.M.
• 2:19
  smucker
• 2:19
  bet
• 2:19
  on
• 2:20
  with
• 2:20
  Hostess,
• 2:21
  you
• 2:21
  know,
• 2:21
  countless
• 2:21
  examples.
• 2:22
  If
• 2:23
  you're
• 2:23
  divesting
• 2:24
  and
• 2:24
  breaking
• 2:24
  things
• 2:25
  apart,
• 2:25
  you're
• 2:26
  getting
• 2:26
  rid
• 2:26
  of
• 2:26
  the
• 2:27
  boat
• 2:27
  anchors
• 2:27
  that
• 2:28
  others
• 2:28
  could
• 2:28
  do
• 2:28
  better
• 2:29
  than
• 2:29
  you.
• 2:30
  Right?
• 2:30
  In
• 2:31
  this
• 2:31
  market,
• 2:32
  growth
• 2:32
  is
• 2:33
  hard.
• 2:33
  Folks
• 2:34
  have
• 2:34
  negative
• 2:34
  comps.
• 2:35
  So
• 2:36
  you're
• 2:36
  seeing
• 2:36
  this
• 2:36
  a
• 2:36
  lot.
• 2:37
  It's
• 2:37
  shrink
• 2:37
  to
• 2:38
  grow.
• 2:38
  Right.
• 2:39
  Could
• 2:39
  someone
• 2:39
  else
• 2:40
  do
• 2:40
  better
• 2:40
  with
• 2:41
  Oscar
• 2:42
  Meyer
• 2:42
  and
• 2:42
  Lunchables
• 2:43
  and
• 2:44
  Mac
• 2:44
  and
• 2:44
  Cheese?
• 2:45
  When,
• 2:45
  when
• 2:45
  these
• 2:45
  brands
• 2:46
  aren't
• 2:46
  succeeding
• 2:46
  at
• 2:46
  Kraft
• 2:47
  Heinz,
• 2:47
  I
• 2:48
  think
• 2:48
  know
• 2:48
  what?
• 2:48
  Probably
• 2:49
  right.
• 2:50
  The
• 2:50
  large
• 2:50
  conglomerate
• 2:51
  CPGs,
• 2:53
  you
• 2:53
  know,
• 2:53
  they
• 2:54
  take
• 2:54
  off
• 2:54
  their
• 2:54
  pants
• 2:55
  one
• 2:55
  leg
• 2:55
  at
• 2:55
  a
• 2:55
  time
• 2:56
  like
• 2:56
  the
• 2:56
  rest
• 2:56
  of
• 2:56
  us.
• 2:56
  They
• 2:57
  have
• 2:57
  to
• 2:57
  allocate
• 2:57
  resources
• 2:58
  like
• 2:58
  anyone
• 2:59
  else.
• 2:59
  So,
• 3:00
  you
• 3:00
  know,
• 3:00
  these
• 3:00
  brands,
• 3:00
  they
• 3:01
  fall
• 3:01
  out
• 3:01
  of
• 3:01
  favor,
• 3:02
  kind
• 3:02
  of
• 3:03
  a
• 3:03
  death
• 3:03
  spiral
• 3:03
  internally.
• 3:05
  So
• 3:05
  someone
• 3:06
  who
• 3:06
  can
• 3:06
  take
• 3:06
  them,
• 3:07
  make
• 3:07
  them
• 3:07
  higher
• 3:07
  priority,
• 3:08
  take
• 3:09
  the
• 3:09
  brand
• 3:09
  equity,
• 3:10
  invest
• 3:11
  in
• 3:11
  marketing,
• 3:11
  invest
• 3:12
  in
• 3:12
  innovation.
• 3:13
  It's
• 3:13
  been
• 3:13
  shown
• 3:13
  numerous
• 3:14
  times
• 3:14
  that
• 3:14
  it
• 3:15
  works
• 3:15
  and
• 3:15
  that,
• 3:15
  and
• 3:15
  that's
• 3:15
  what
• 3:16
  they're
• 3:16
  banking
• 3:16
  on
• 3:16
  here,
• 3:17
  which
• 3:18
  does
• 3:19
  make
• 3:19
  sense
• 3:19
  if
• 3:19
  there's
• 3:20
  a
• 3:20
  willing
• 3:20
  party,
• 3:21
  which
• 3:21
  is
• 3:21
  always
• 3:21
  the
• 3:22
  other
• 3:22
  side
• 3:22
  of
• 3:22
  it.
• 3:23
  But
• 3:23
  you
• 3:23
  know,
• 3:23
  the
• 3:24
  breakup,
• 3:25
  I
• 3:25
  mean,
• 3:25
  it's
• 3:26
  just
• 3:26
  a
• 3:26
  couple
• 3:26
  of
• 3:26
  years
• 3:26
  ago
• 3:26
  in
• 3:27
  terms
• 3:27
  of
• 3:27
  what
• 3:27
  Kellogg
• 3:28
  did,
• 3:28
  you
• 3:28
  know,
• 3:28
  into
• 3:29
  Kelanova
• 3:29
  and
• 3:29
  Kellogg
• 3:30
  and
• 3:30
  now
• 3:30
  that's
• 3:30
  selling
• 3:31
  off
• 3:31
  to
• 3:31
  Ferrero,
• 3:32
  who's
• 3:32
  going
• 3:32
  to
• 3:32
  try
• 3:32
  to
• 3:33
  put
• 3:33
  it
• 3:33
  on
• 3:33
  speed.
• 3:35
  You
• 3:35
  know,
• 3:35
  it's,
• 3:36
  it's,
• 3:36
  it's,
• 3:37
  it's
• 3:37
  a
• 3:37
  ten
• 3:37
  year
• 3:37
  journey
• 3:38
  here.
• 3:38
  That,
• 3:38
  that
• 3:39
  reached
• 3:39
  kind
• 3:39
  of
• 3:40
  an
• 3:40
  inevitable
• 3:40
  conclusion
• 3:41
  and
• 3:41
  we'll
• 3:41
  see
• 3:41
  where
• 3:41
  it
• 3:41
  goes
• 3:42
  from
• 3:42
  here.
• 3:43
  Yeah.
• 3:43
  Chad,
• 3:43
  how
• 3:44
  much
• 3:44
  do
• 3:44
  you
• 3:44
  think
• 3:44
  like
• 3:45
  regulation
• 3:45
  is
• 3:46
  going
• 3:46
  to
• 3:46
  impact?
• 3:46
  You
• 3:47
  know,
• 3:47
  in
• 3:47
  the
• 3:47
  past
• 3:47
  you
• 3:48
  had
• 3:48
  these
• 3:48
  mergers
• 3:49
  and
• 3:49
  acquisitions
• 3:50
  or
• 3:50
  divestitures
• 3:51
  happening.
• 3:52
  Do
• 3:52
  you
• 3:52
  think
• 3:52
  that
• 3:52
  there's
• 3:53
  less
• 3:53
  opportunity
• 3:54
  now
• 3:54
  because
• 3:55
  of
• 3:55
  the
• 3:55
  requirements
• 3:56
  to
• 3:57
  change
• 3:57
  ingredients
• 3:58
  or
• 3:58
  remove
• 3:59
  artificial
• 4:00
  flavorings
• 4:00
  and
• 4:00
  that
• 4:00
  kind
• 4:00
  of
• 4:00
  stuff
• 4:01
  in
• 4:01
  this
• 4:01
  kind
• 4:02
  of
• 4:02
  category
• 4:02
  that
• 4:02
  will
• 4:03
  impact
• 4:03
  that?
• 4:04
  I
• 4:04
  don't
• 4:05
  know
• 4:05
  that
• 4:05
  it
• 4:05
  has
• 4:06
  an
• 4:06
  impact
• 4:06
  specifically
• 4:07
  on
• 4:07
  a,
• 4:08
  on
• 4:08
  a
• 4:08
  deal
• 4:08
  like
• 4:08
  this.
• 4:09
  I
• 4:09
  mean,
• 4:09
  listen,
• 4:09
  okay,
• 4:10
  food
• 4:10
  industry
• 4:11
  is
• 4:11
  on
• 4:11
  watch
• 4:11
  right
• 4:12
  now,
• 4:12
  right?
• 4:13
  It
• 4:13
  comes
• 4:13
  to
• 4:13
  that.
• 4:14
  Right.
• 4:14
  And
• 4:15
  you
• 4:15
  know,
• 4:15
  that's
• 4:16
  just
• 4:16
  becoming,
• 4:17
  you
• 4:17
  know,
• 4:17
  at
• 4:18
  this
• 4:18
  point,
• 4:18
  some
• 4:18
  degree
• 4:19
  of
• 4:19
  table
• 4:19
  stakes
• 4:19
  of
• 4:20
  how
• 4:20
  the
• 4:20
  industry
• 4:20
  needs
• 4:20
  to
• 4:21
  react
• 4:21
  going
• 4:22
  forward.
• 4:22
  I'm
• 4:22
  not
• 4:23
  sure
• 4:23
  that
• 4:23
  individual,
• 4:25
  especially
• 4:26
  brands
• 4:26
  in
• 4:26
  this
• 4:27
  kind
• 4:27
  of
• 4:27
  catalog
• 4:29
  that,
• 4:29
  that
• 4:29
  ultimately
• 4:30
  is
• 4:30
  going
• 4:30
  to
• 4:31
  be
• 4:31
  a
• 4:31
  deterrent
• 4:32
  or
• 4:32
  an
• 4:32
  accelerator
• 4:33
  on
• 4:33
  M
• 4:33
  and
• 4:33
  A
• 4:33
  activity.
• 4:35
  And
• 4:35
  David
• 4:35
  Brown,
• 4:36
  where
• 4:36
  do
• 4:36
  you
• 4:37
  see
• 4:37
  the
• 4:37
  opportunity
• 4:38
  here
• 4:38
  from
• 4:38
  this?
• 4:39
  You
• 4:39
  know,
• 4:39
  as
• 4:39
  somebody
• 4:39
  who's
• 4:40
  worked
• 4:40
  in
• 4:41
  professional
• 4:41
  services
• 4:41
  for
• 4:42
  a
• 4:42
  long
• 4:42
  time,
• 4:42
  if,
• 4:42
  if
• 4:43
  Kraft
• 4:43
  Heinz
• 4:43
  is
• 4:44
  coming
• 4:44
  to,
• 4:44
  they're,
• 4:45
  they're
• 4:45
  the
• 4:45
  separate
• 4:46
  companies
• 4:46
  now.
• 4:47
  What
• 4:47
  are
• 4:47
  some
• 4:47
  of
• 4:47
  the
• 4:47
  key
• 4:48
  things
• 4:48
  that
• 4:48
  you
• 4:48
  think
• 4:49
  could
• 4:49
  be,
• 4:49
  or
• 4:49
  actions
• 4:50
  that
• 4:50
  could
• 4:50
  be
• 4:50
  taken
• 4:51
  right
• 4:51
  now
• 4:52
  to
• 4:52
  help
• 4:52
  the
• 4:52
  success
• 4:53
  of
• 4:53
  the
• 4:54
  future?
• 4:55
  I
• 4:55
  agree
• 4:55
  with
• 4:55
  a
• 4:55
  lot
• 4:56
  of
• 4:56
  what
• 4:57
  Chad
• 4:57
  said
• 4:57
  and
• 4:57
  I
• 4:57
  think
• 4:58
  there's
• 4:58
  a
• 4:58
  couple
• 4:58
  other
• 4:58
  angles.
• 5:00
  One,
• 5:00
  I
• 5:00
  think
• 5:01
  what
• 5:01
  we're
• 5:01
  seeing
• 5:01
  now
• 5:01
  is
• 5:01
  the
• 5:02
  dismantling
• 5:03
  or
• 5:03
  the,
• 5:03
  the
• 5:04
  proof
• 5:04
  point
• 5:04
  that
• 5:05
  a
• 5:05
  lot
• 5:05
  of
• 5:05
  the
• 5:06
  3G
• 5:07
  work
• 5:08
  just
• 5:08
  really
• 5:08
  didn't
• 5:08
  work.
• 5:09
  Right.
• 5:10
  That,
• 5:10
  you
• 5:10
  know,
• 5:10
  all
• 5:11
  of
• 5:12
  these
• 5:12
  billions
• 5:13
  of
• 5:13
  dollars
• 5:14
  of
• 5:14
  cost
• 5:14
  synergies
• 5:15
  that
• 5:15
  were
• 5:15
  supposed
• 5:16
  to
• 5:16
  happen
• 5:17
  really
• 5:17
  haven't
• 5:18
  worked
• 5:18
  because
• 5:19
  of
• 5:19
  either
• 5:19
  the
• 5:20
  complexity
• 5:20
  of
• 5:20
  the
• 5:20
  organizations
• 5:22
  or
• 5:22
  as
• 5:22
  Chad
• 5:22
  said,
• 5:23
  the
• 5:23
  resource
• 5:23
  allocation,
• 5:25
  et
• 5:25
  cetera,
• 5:25
  et
• 5:26
  cetera.
• 5:27
  So
• 5:27
  I
• 5:27
  think
• 5:27
  the
• 5:28
  opportunities
• 5:28
  as
• 5:29
  you
• 5:29
  split
• 5:29
  these
• 5:29
  apart
• 5:30
  is
• 5:30
  really
• 5:30
  going
• 5:30
  to
• 5:31
  be
• 5:31
  to
• 5:31
  be
• 5:32
  laser
• 5:32
  focused
• 5:33
  on
• 5:33
  what
• 5:34
  matters
• 5:35
  for
• 5:35
  the
• 5:35
  consumer.
• 5:36
  So
• 5:37
  you
• 5:37
  pick
• 5:37
  a
• 5:38
  strategy
• 5:38
  and
• 5:38
  then
• 5:38
  you
• 5:39
  ruthlessly
• 5:40
  execute
• 5:41
  against
• 5:41
  it.
• 5:41
  It's
• 5:42
  really
• 5:42
  hard
• 5:43
  to
• 5:43
  pick,
• 5:44
  you
• 5:44
  know,
• 5:45
  six
• 5:45
  different
• 5:45
  strategies
• 5:46
  within
• 5:46
  an
• 5:47
  organization
• 5:48
  and
• 5:48
  execute
• 5:49
  it
• 5:49
  against
• 5:49
  it
• 5:50
  effectively
• 5:51
  because
• 5:51
  it
• 5:52
  just
• 5:52
  doesn't
• 5:52
  work.
• 5:53
  Right.
• 5:53
  So
• 5:53
  I
• 5:54
  think
• 5:54
  that's
• 5:54
  what
• 5:54
  we're
• 5:54
  seeing
• 5:55
  more
• 5:55
  than
• 5:55
  anything
• 5:55
  here.
• 5:56
  And
• 5:56
  as
• 5:56
  you
• 5:56
  kind
• 5:57
  of
• 5:57
  divest
• 5:58
  and
• 5:58
  be
• 5:58
  able
• 5:58
  to
• 5:59
  get
• 5:59
  more
• 5:59
  focused,
• 6:00
  I
• 6:00
  think
• 6:00
  the
• 6:00
  other
• 6:00
  interesting
• 6:01
  thing
• 6:01
  that
• 6:02
  I
• 6:02
  haven't
• 6:03
  seen
• 6:03
  in
• 6:03
  any
• 6:03
  of
• 6:03
  the
• 6:03
  press
• 6:04
  on
• 6:04
  any
• 6:04
  of
• 6:04
  these
• 6:04
  deals
• 6:05
  yet
• 6:07
  is
• 6:07
  as
• 6:08
  they
• 6:08
  go
• 6:08
  to
• 6:09
  either
• 6:10
  get
• 6:10
  sold
• 6:10
  to
• 6:11
  foreign
• 6:11
  entities
• 6:12
  or
• 6:12
  foreign
• 6:13
  entities
• 6:13
  are,
• 6:14
  are
• 6:14
  looking
• 6:14
  at
• 6:14
  them,
• 6:15
  the
• 6:16
  regulations
• 6:16
  do
• 6:17
  matter,
• 6:17
  Right.
• 6:18
  You
• 6:18
  know,
• 6:18
  there's
• 6:19
  a
• 6:19
  lot
• 6:19
  more
• 6:19
  ingredients
• 6:20
  that
• 6:21
  are
• 6:21
  limited
• 6:22
  outside
• 6:22
  of
• 6:22
  the
• 6:22
  U.S.
• 6:23
  than
• 6:23
  inside
• 6:23
  the
• 6:24
  U.S.
• 6:24
  that's
• 6:24
  a
• 6:24
  whole
• 6:24
  different
• 6:25
  debate
• 6:26
  that,
• 6:27
  that
• 6:27
  we
• 6:28
  could
• 6:28
  have.
• 6:29
  But
• 6:29
  also
• 6:30
  the,
• 6:30
  you
• 6:30
  know,
• 6:30
  the
• 6:31
  ongoing
• 6:31
  tariff
• 6:31
  situation
• 6:33
  and
• 6:33
  like,
• 6:34
  if
• 6:34
  you
• 6:34
  start
• 6:34
  moving,
• 6:35
  you
• 6:35
  know,
• 6:35
  kind
• 6:35
  of
• 6:36
  manufacturing
• 6:36
  plants
• 6:37
  or,
• 6:37
  you
• 6:38
  know,
• 6:38
  now
• 6:38
  you're
• 6:38
  re
• 6:39
  importing
• 6:40
  cereal
• 6:40
  or
• 6:41
  Mac
• 6:41
  and
• 6:41
  cheese
• 6:42
  or
• 6:42
  whatever
• 6:43
  it
• 6:43
  is,
• 6:45
  you
• 6:45
  could
• 6:45
  be
• 6:45
  talking
• 6:45
  about
• 6:46
  drastically
• 6:46
  different
• 6:46
  price
• 6:47
  points.
• 6:47
  Right.
• 6:48
  So
• 6:50
  how
• 6:50
  that
• 6:50
  plays
• 6:50
  out
• 6:51
  on
• 6:51
  the
• 6:51
  valuations.
• 6:52
  Right.
• 6:52
  And
• 6:53
  Kraft
• 6:53
  Heinz
• 6:53
  has
• 6:53
  had
• 6:54
  this
• 6:54
  innovation
• 6:54
  center
• 6:55
  focused
• 6:55
  on
• 6:56
  product
• 6:56
  design
• 6:57
  and
• 6:57
  development
• 6:57
  for
• 6:58
  75
• 6:59
  years
• 6:59
  or
• 6:59
  something
• 6:59
  now
• 7:00
  too,
• 7:00
  but
• 7:01
  likely
• 7:01
  focused
• 7:01
  on
• 7:02
  the
• 7:02
  US
• 7:02
  Market
• 7:03
  and
• 7:03
  what
• 7:03
  they're
• 7:03
  doing
• 7:04
  here,
• 7:04
  not
• 7:04
  what
• 7:05
  those
• 7:05
  regulations
• 7:05
  are
• 7:06
  probably
• 7:06
  going
• 7:06
  to
• 7:07
  be.
• 7:07
  When
• 7:07
  you're
• 7:07
  looking
• 7:07
  at
• 7:08
  overseas
• 7:08
  buyers.
• 7:09
  Chris
• 7:10
  Walton,
• 7:11
  round
• 7:12
  us
• 7:12
  out
• 7:12
  here.
• 7:12
  What
• 7:12
  else
• 7:13
  would
• 7:13
  you
• 7:13
  add
• 7:13
  to
• 7:14
  what
• 7:14
  David
• 7:15
  and
• 7:15
  Chad
• 7:15
  had
• 7:15
  to
• 7:15
  say?
• 7:17
  Yeah,
• 7:17
  I
• 7:17
  don't,
• 7:17
  I
• 7:17
  don't,
• 7:18
  I
• 7:18
  don't
• 7:18
  think
• 7:18
  I'd
• 7:18
  add
• 7:18
  much,
• 7:18
  but
• 7:18
  I
• 7:19
  do
• 7:19
  have
• 7:19
  an
• 7:19
  analogy
• 7:19
  that
• 7:19
  I
• 7:20
  use
• 7:20
  to
• 7:20
  think
• 7:20
  about
• 7:20
  these
• 7:20
  things.
• 7:21
  You
• 7:21
  know,
• 7:21
  I
• 7:21
  think
• 7:21
  of
• 7:21
  it
• 7:21
  like,
• 7:22
  you
• 7:22
  know,
• 7:22
  whenever
• 7:22
  it
• 7:22
  was
• 7:22
  what,
• 7:23
  what,
• 7:23
  what
• 7:23
  they
• 7:23
  say
• 7:23
  was
• 7:24
  15
• 7:24
  years
• 7:24
  ago
• 7:24
  that
• 7:25
  this,
• 7:25
  this
• 7:25
  merger
• 7:25
  happened.
• 7:27
  You
• 7:27
  know,
• 7:27
  to
• 7:27
  me
• 7:27
  it's
• 7:28
  just
• 7:28
  like,
• 7:28
  you
• 7:28
  know,
• 7:28
  it's
• 7:28
  like
• 7:28
  a
• 7:28
  marriage
• 7:29
  and
• 7:29
  the
• 7:29
  marriage
• 7:30
  didn't
• 7:30
  work
• 7:30
  out
• 7:31
  and
• 7:31
  they
• 7:32
  need
• 7:32
  to
• 7:32
  separate
• 7:33
  and
• 7:33
  they,
• 7:33
  they're
• 7:34
  not
• 7:34
  as
• 7:34
  sexy,
• 7:34
  they're
• 7:35
  not
• 7:35
  as
• 7:35
  good
• 7:35
  looking,
• 7:36
  they're
• 7:36
  not
• 7:36
  as
• 7:36
  happy
• 7:37
  as
• 7:37
  they
• 7:37
  were
• 7:37
  when
• 7:38
  they
• 7:38
  were
• 7:38
  apart
• 7:39
  from
• 7:39
  each
• 7:39
  other.
• 7:39
  And
• 7:40
  so
• 7:40
  now
• 7:40
  they've
• 7:40
  got
• 7:40
  to
• 7:40
  separate
• 7:41
  and
• 7:41
  potentially
• 7:42
  get
• 7:42
  back
• 7:42
  into
• 7:42
  the
• 7:42
  gym
• 7:43
  and
• 7:43
  start
• 7:43
  working
• 7:44
  out
• 7:44
  and
• 7:44
  finding
• 7:45
  the
• 7:45
  happiness
• 7:45
  in
• 7:45
  life
• 7:46
  and
• 7:46
  potentially
• 7:46
  there's
• 7:47
  another
• 7:47
  acquirer
• 7:48
  down
• 7:48
  the
• 7:48
  road.
• 7:48
  And
• 7:48
  maybe
• 7:49
  to
• 7:49
  David's
• 7:49
  point,
• 7:49
  that
• 7:49
  Acquirer
• 7:50
  is
• 7:50
  an
• 7:50
  international
• 7:51
  company
• 7:51
  that
• 7:51
  is
• 7:52
  farther
• 7:52
  ahead
• 7:52
  on
• 7:52
  understanding
• 7:53
  the
• 7:53
  different
• 7:54
  puts
• 7:54
  and
• 7:54
  takes
• 7:55
  with,
• 7:55
  you
• 7:55
  know,
• 7:56
  refining
• 7:56
  product
• 7:57
  formulations
• 7:57
  and
• 7:57
  all
• 7:58
  that.
• 7:58
  So
• 7:58
  that
• 7:58
  that's
• 7:58
  how
• 7:59
  I
• 7:59
  look
• 7:59
  at
• 7:59
  this.
• 7:59
  It's
• 8:00
  just,
• 8:00
  you
• 8:00
  know,
• 8:00
  the
• 8:01
  natural
• 8:01
  progression
• 8:01
  that
• 8:02
  that
• 8:02
  happens
• 8:03
  for
• 8:03
  a
• 8:04
  lot
• 8:04
  of
• 8:04
  folks
• 8:04
  in
• 8:04
  many
• 8:05
  aspects
• 8:05
  of
• 8:05
  life.
• 8:07
  Except
• 8:07
  for
• 8:07
  you,
• 8:07
  Chris,
• 8:08
  who's
• 8:08
  gotten
• 8:09
  sexier
• 8:09
  over
• 8:09
  time.
• 8:10
  Oh,
• 8:11
  thank
• 8:11
  you.
• 8:11
  Thank
• 8:11
  you
• 8:13
  everywhere
• 8:13
  on
• 8:13
  this
• 8:13
  podcast,
• 8:14
  Chad.
• 8:14
  Thank
• 8:15
  you,
• 8:15
  thank
• 8:15
  you.