Rita McGrath | Though Sparks
Kraft Heinz's Breakup: The End of Mass Produced Food?
INTRODUCTION
It was a mega-merger of iconic brands, supportedbynolessageniusthanWarren Buffett.Itwassupposedtounlockvaluefor investors and rethink how food would be consumed globally. But what if the unraveling of the Kraft-Heinz merger is actuallyasignalofamuchmoreprofound shift?
ACANARYINTHECOAL MINE?
fteradecadeofwrestlingwiththeeffectsofan -considered strategy, which I have written bout before, the leadership at Kraft-Heinz has hrown in the towel. The company has nnounced that it intends to unwind its ntanglements,astheWallStreetJournalnotes, one global company would focus on sauces, preads and seasonings, while another would ell grocery staples in North America. The move ims to create businesses with more focus and ess complexity, Kraft Heinz said, and deepens a reversal of the food industry’s yearslong strategyofpursuingdealstobuildscale.”
LOCALFOODASTHE NORTHSTAR
If you want to see where this is headed, look at the explosive growth of local food cultivation and distribution. Farmers markets,community-supportedagriculture (CSA), urban farming, and "farm-to-table" restaurants aren't just trendy lifestyle choices—they're early indicators of a fundamental reorientation toward personalized, locally-adapted food systems.
THETECHNOLOGYACCELERANT
Whatmakesthisshiftdifferentfrompastfoodmovementsistheunderlyingtechnology infrastructurethatcannowsupportmasspersonalization.Thesamedigitalplatformsthat enableUbertomatchyouwiththerightdriverattherighttimecanconnectyouwithlocal producers,customizemealplansbasedonyourpreferencesandrestrictions,oreven enableverticalfarmstogrowpreciselythevarietiesyouwantinyourneighborhood.
DIGITALIZATION
THE ATEGIC ERATIVE
As Kraft Heinz executives noted, the "complexity of our current structure makes itchallengingtoallocatecapitaleffectively, prioritize initiatives and drive scale in our most promising areas. " This isn't just a problem for Kraft Heinz—it's the central challenge facing every organization built forthemassmarketera.
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