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McDonald's dropping Heinz after hiring of former Burger King exec

October 25, 2013

The competition is getting too close for comfort for McDonald's to continue supplying its condiments from Pittsburgh-based Heinz Co. The Post-Gazette reported that McDonald's is transitioning away from Heinz.

The move comes after 3G Capital and Berkshire Hathaway's acquisition of the ketchup company in the spring. Following that acquisition, Heinz named Bernardo Hees as its worldwide CEO. Prior, Hees was the CEO of Burger King, a position he held since 3G's acquisition of the chain in 2010.

"As a result of recent management changes at Heinz, we have decided to transition our business to other suppliers over time," McDonald's said in a statement.

The Post-Gazette story said Heinz supplied 90 percent of McDonald's business in the early 1970s, but a tomato shortage hindered its ability to keep up with demand. McDonald's then began sourcing much of its business from other suppliers.

McDonald's stated that Heinz is now only used in two markets in the U.S. — Pittsburgh and Minneapolis. But the transition will likely impact many international markets.

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