The Hatchet Men and the Hot Dog

Issue 08-07-17   |   Reviewer:   Craig A. Turner, Ph.D.
Disciplines:


Abstract

"I wish I were an Oscar Mayer Weiner." But would you want to own the company and be responsible for this product line? 3G Capital, along with Warren Buffett, decided they did, though not only that brand but all of Kraft's brands.

The wiener does represent a sound microcosm of the problems facing large brands that were stalwarts over the past century. 3G is known for cost cutting to gain returns on their investments. They are taking a new approach with Oscar Mayer.

With pressures on cost from private label companies and pressure on quality from organic and more natural products from newer firms, 3G has opted to address the product's sullied image not only by advertising but changing the product. The results thus far are not stellar, but strategy often takes longer to come to fruition. Warren Buffett believes it needs another year.





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