Ketchup Switch-Up: McDonald's Squeezes Out Heinz

By Ayo Akin | Oct 29, 2013 11:20 AM EDT

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Not to fret: McDonald's will still serve ketchup with your fries. It just won't be from Heinz.

The world's largest server of hamburgers will no longer do business with the world's largest maker of ketchup. McDonald's emailed a statement to The Huffington Post about the decision to terminate a relationship with the H. J. Heinz Company that has lasted over four decades.

"As a result of recent management changes at Heinz," read the statement, "we have decided to transition our business to other suppliers over time. We have spoken to Heinz and plan to work together to ensure a smooth and orderly transition of the McDonald's restaurant business, and are confident that there will be no impact to our business, our customers and our great tasting food at McDonald's."

The "management changes" may be a reference to the recent growing ties between Heinz and McDonald's arch rival, Burger King. Back in April, former Burger King CEO Bernardo Hees was appointed as CEO of Heinz. It is also worth noting that New York-based 3G Capital owns both Heinz and Burger King. As a result, there was speculation that 3G may cut off ketchup supply to McDonald's.

However, many McDonald's locations in the United States had stopped serving Heinz ketchup for years. McDonalds' director of global media relations, Becca Hary, said that Minneapolis and Pittsburgh were the only markets that used Heinz prior to the announcement. This confirms a Wall Street Journal interview featuring John Bennett, the Heinz vice president of food-service ketchup, condiments and sauces-conducted back in 2011.

Coincidentally, one of the markets, Pittsburgh, serves as Heinz's headquarters.

"Globally, Heinz represents a small percentage of McDonald's condiment and sauce business," said Hary.

At press time, McDonald's representatives are silent on the current major supplier of their company's ketchup, or which company will take the place of Heinz in Minneapolis and Pittsburgh. 

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