NEW YORK: Warren Buffett said on Monday that his company Berkshire Hathaway Inc. overpaid in the merger that created Kraft Heinz Co.
Berkshire and Brazilian firm 3G Capital had teamed up in 2015 to combine the former Kraft Foods with their H.J. Heinz. They own about half of the merged company, with Berkshire holding a 26.7 percent stake.
“We overpaid for Kraft,” Buffett said on CNBC television. “I was wrong in a couple of ways on Kraft Heinz.”
Buffett spoke four days after Kraft Heinz took a $15.4 billion writedown for its Kraft and Oscar Mayer brands and other assets, slashed its dividend, and said the US Securities and Exchange Commission was probing its accounting. Kraft Heinz also said a turnaround likely wasn’t imminent.
Kraft Heinz tumbled 27.5 percent on Friday, causing Berkshire to lose $4.3 billion on its stake.
Buffett said he had learned about the SEC probe about seven to 10 days before it was announced.
Greg Abel, a Berkshire vice chairman who is widely considered a candidate to succeed the 88-year-old Buffett as Berkshire’s chief executive officer, sits on Kraft Heinz’s board.
Kraft Heinz’s announcement raised questions about 3G Capital’s financial strategy for Kraft Heinz, whose brands include Jell-O, Kool-Aid and Philadelphia cream cheese, and whether it appears increasingly out of step with consumers seeking healthier, fresher alternatives to processed food products.
Buffett acknowledged these changes, but said greater pressure is coming from retailers such as Amazon.com Inc., Walmart Inc. and Costco Wholesale Corp., including through the latter’s Kirkland brand.
“The ability to price has changed, and that’s huge,” Buffett said.
Berkshire overpaid for Kraft Heinz: Warren Buffett
Berkshire overpaid for Kraft Heinz: Warren Buffett
- ‘We overpaid for Kraft. I was wrong in a couple of ways on Kraft Heinz’
- Warren Buffett spoke four days after Kraft Heinz took a $15.4 billion writedown
Saudi POS spending jumps 28% in final week of Jan: SAMA
RIYADH: Saudi Arabia’s point-of-sale spending climbed sharply in the final week of January, rising nearly 28 percent from the previous week as consumer outlays increased across almost all sectors.
POS transactions reached SR16 billion ($4.27 billion) in the week ending Jan. 31, up 27.8 percent week on week, according to the Saudi Central Bank. Transaction volumes rose 16.5 percent to 248.8 million, reflecting stronger retail and service activity.
Spending on jewelry saw the biggest uptick at 55.5 percent to SR613.69 million, followed by laundry services which saw a 44.4 percent increase to SR62.83 million.
Expenditure on personal care rose 29.1 percent, while outlays on books and stationery increased 5.1 percent. Hotel spending climbed 7.4 percent to SR377.1 million.
Further gains were recorded across other categories. Spending in pharmacies and medical supplies rose 33.4 percent to SR259.19 million, while medical services increased 13.7 percent to SR515.44 million.
Food and beverage spending surged 38.6 percent to SR2.6 billion, accounting for the largest share of total POS value. Restaurants and cafes followed with a 20.4 percent increase to SR1.81 billion. Apparel and clothing spending rose 35.4 percent to SR1.33 billion, representing the third-largest share during the week.
The Kingdom’s key urban centers mirrored the national surge. Riyadh, which accounted for the largest share of total POS spending, saw a 22 percent rise to SR5.44 billion from SR4.46 billion the previous week. The number of transactions in the capital reached 78.6 million, up 13.8 percent week on week.
In Jeddah, transaction values increased 23.7 percent to SR2.16 billion, while Dammam reported a 22.2 percent rise to SR783.06 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
