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Kraft Heinz's new CEO inherits challenges left behind by cost-cutting

Lauren Hirsch

The announcement that Miguel Patricio is replacing Bernardo Hees as Kraft Heinz CEO raises questions over what went wrong at the food conglomerate and what steps the new CEO must take to turn the ailing giant around. Industry insiders and experts say the cost-cutting approach by private equity firm 3G Capital fell apart because Kraft Heinz failed to invest enough in its brands. Brazilian private equity firm 3G Capital built its reputation by scooping up iconic consumer brands, aggressively cutting costs and using those savings to fund acquisitions.