Heinz, Mondelez and the private equity effect
Private equity dominated the February Consumer Analyst Group of New York (CAGNY) conference, even without a formal presence - a measure of the extent to which the buyout funds' operational methods have permeated the food industry. While leveraged buyouts have not yet recovered their pre-2008 scale or volume, the big buyout houses emerged from the meltdown bigger than ever as complex financial conglomerates for whom pillaging companies is only part of the business of buying and trading everything. But private equity is not a closed universe. The funds' substantial footprint in the processed food industry, as elsewhere, has brought into the mainstream the financial engineering and aggressive cost-cutting developed through decades of leveraged buyouts.