Question

Kraft-Heinz recent reported quarterly results included a “write down” of the value of two of their iconic brands, Oscar Mayer and Kraft, by a total of over $15 billion dollars. List and describe two conditions that forced K-H to take the drastic step of writing down these brand values?

Answer 1

The first condition is to reduce the costs getting incurred to the company that could be covered from the sale and writing down of these two brands. It will bring consolidation in other brands and refocused to compete in the market. The sale brought more than $10 Billion and it helped to cover the loss of more than $12 Billion.

The second condition is to clear the accounts, and making it more transparent, and give right message to the investors to remain with the parent company. With this writing down, the company will now compete and consolidate in the grocery market  so that reposition the company among the consumers with more intensity.