McDonald's Heinz: Fast-Food Chain Splits with Ketchup Giant After Management Change

Oct 26, 2013 11:59 AM EDT | Jordan Ecarma

McDonald's Corp. is cutting ties with ketchup maker H.J. Heinz Co. after 40 years, Reuters reported.

Because the company is now led by Bernardo Hees, former chief executive of fast food rival Burger King Worldwide Inc, McDonald's is now looking elsewhere for its ketchup supply.

"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. "We have spoken to Heinz and plan to work together to ensure a smooth and orderly transition," 

Heinz declined to comment due to company policy.

McDonald's shift away from Heinz, which sells more than 650 million bottles of ketchup worldwide each year, could benefit ketchup rivals Hunt's and Del Monte.

Heinz used to supply 90 percent of McDonald's ketchup and pickles according to author John F. Love's book from 1986 entitled "McDonald's: Behind the Arches" The Post-Gazette reported.

After the ketchup conglomerate couldn't supply McDonald's with enough ketchup due to a tomato shortage, the restaurant chain took most of its business elsewhere.

The switch will be more apparent overseas than in the United States, as McDonald's, which has more than 34,000 restaurants worldwide, only serves Heinz ketchup in two domestic markets, Pittsburgh and Minneapolis, the Pittsburgh Post-Gazette reported on Friday.

Ketchup packages handed out at McDonald's restaurants in the United States often say only "fancy ketchup." Most in-store ketchup dispensers are not branded.

Heinz had been gaining ground in some international markets.

In the U.S., other fast-food operators such as Wendy's and Chick-fil-A use Heinz's Dip & Squeeze portion-controlled ketchup servings.

Burger King has been a Heinz customer for "decades" and uses its products in roughly 80 percent of markets around the world, spokesman Miguel Piedra told Reuters.

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