Slim Wins : How 3G Capital Reinvented the Packaged Food Industry
Hernandez, Kyle F.
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3G Capital is a United States-based private equity firm created by Brazilian businessmen with an appetite for Americana. Since its inception in 2004, 3G Capital has targeted American staples, such as fast food giant Burger King and global beer powerhouse Anheuser-Busch. However, despite establishing a firm presence in the United States, little is known about the processes involved in 3G's success. The following paper explores the mechanisms 3G Capital has implemented at the Kraft Heinz Company (KHC). By examining literature discussing the theoretical merits of techniques such as Zero-Based Budgeting (ZBB), supply chain management, and merit-based cultural reinvigoration, and comparing such techniques to other firms in the industry, I hope to provide an answer for why KHC has found such quick success in a highly competitive industry. By considering the packaged food industry, it is clear competing firms have been forced to hastily implement ZBB programs focused on cutting costs as a direct result of KHC's impressive margins. Leveraging 3G's vast experience with ZBB, supply chain management, and strong organizational culture has given KHC a massive advantage over rival firms and is the primary reason for their success. In all, the synergetic benefits of cost-cutting KHC has enjoyed since 3G's emergence are due to the practiced and efficient integration of established business techniques such as Zero-Based Budgeting and supply chain management and are further augmented by the strong organizational culture 3G-owned business are renowned for.