McDonald’s Ditches Heinz

by Rachel Baker on October 29, 2013

The Daily Beast has an informative article on why McDonald’s is getting rid of Heinz ketchup in its restaurants.

There’s less—and more—than meets the eye. The less part? McDonald’s says it only uses Heinz ketchup in the Pittsburgh and Minneapolis markets. So this isn’t a major business disruption for either party. The more part? The relationship between American business icons is being torn asunder by a strange and interesting wrinkle in globalization: the advent of Brazilian investors as major forces in the U.S. market.

A little background. McDonald’s and Heinz are both corporate American royalty. Heinz traces its lineage to 1869 and first started making ketchup in 1876. And while they’re both based in the Midwest (Chicago for McDonald’s and Pittsburgh for Heinz), and while few companies have done more than McDonald’s to promulgate the use of sweet, salty, processed tomato goop around the world, the two firms haven’t had all that much to do with one another over the years.

So why the split? McDonald’s cited “recent management changes” at Heinz.

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