An in-depth media analysis on the recent merger of Kraft and Heinz. Using publication and social media research, this presentation analyses sentiment and message pull.
Created with Kimberly Conquest and Mew Nanavaratorn.
2. Context
Merger announcement March 25
Heinz set to take over Kraft later
in 2015 with 51-49% ownership
split
Small handful of companies
control vast majority of consumer
goods – especially food and
beverage
4. Research Methodology
FACTIVA SEARCH STRING
(("Heinz-Kraft")or(Heinz
and Kraft))and(monopoly or
"food giant" or takeover)
DATE RANGE
First 3 days surrounding
merger announcement
FILTERS
•Publications only
•Remove Dow Jones
•Remove duplicates
•English only
5. Metrics and Criteria
PUBLICATIONS
•Unique publications
•Original articles
from same
publication
•Influence
RELEVANCE
•Headline
•Topic
• Merger
• Industry/
consumer impact
•Key phrases
• Food giant
• Take over
• Monopoly
SENTIMENT
•Tone
• Informative
• Positive slant
• Negative slant
•Angle
• Financial
• Factual/News
• Commentary
6. Metrics and Criteria
MOST QUOTED
•Alex Behring
•Warren Buffet
•John Cahill
•Bernardo Hees
MESSAGE PULL THROUGH
•Language from press release
• Unparalleled portfolio
• Powerful and icon brands
• 3rd largest in NA; 5th largest in world
• Synergy opportunities; global
expansion
• Increased investments in marketing
and innovation
• Driving innovation; growth;
leadership position in industry
• Commitment to local charities
QUOTE PREVALENCE
•Number of quotes
lifted from press
release
8. Relevance
80%
20%
Coverage (186) Original Articles Relevant to the Hypothesis (46)
Measuring Relevance
• Headline contained key
terms or noted the merger
directly
• Body copy spoke to
anticipated results of merger
rather than exclusively
investor, shareholder and ,
stock information
10. Influential Publications
Article Publication Influence Score Circulation Data
HJ Heinz buying Kraft; New company will be $28B food giant Associated Press, Inc. 99 n/a
Kraft and Heinz merger to create food giant CNN 73
Kraft Foods And The Rise Of Wall Street's Buy And Hold Kingpins Forbes 77 930,391
Heinz deal: Cheeses can't save Kraft New York Post (Regional) 85 477,314
ANALYSIS-As 3G digests Kraft deal, rivals will focus on organic firms Reuters News 99 n/a
PRESS DIGEST- British Business - March 26 Reuters News 99 n/a
3G Is Said to Be in Talks to Buy Kraft The New York Times 99 2,149,012
Morning Agenda: Buffett's and 3G's Bold Bet on Kraft Foods The New York times 99 2,149,012
Buffett and Heinz Say Nuts to Soup The Wall Street Journal 99 2,294,093
Deal-Hungry Brazilians Came Knocking, Found Welcome Mat The Wall Street Journal 99 2,294,093
Meet the Father of Zero-Based Budgeting; Pete Pyhrr’s strategy reached the
White House in 1970s, then almost disappeared; now Heinz, Kraft are adopting it The Wall Street Journal 99 2,294,093
Heinz will buy Kraft Foods in mega-merger for American food The Washington Post 98 436,601
12. Headlines Relevant to Hypothesis
“Kraft Food Group Inc. Stockholders
Encouraged to Contact Securities Law Firm
about Takeover”
“UK unions worried as Heinz
swallows rival giant Kraft”
“Heinz to buy Kraft in deal backed by
Tim Hortons’ owner and Buffett”
“Heinz gobbles up Kraft in 'merger'
worth £19bn “
13. Message Pull Through
Measuring Message Pull Through
• None = fewer than two
messaging themes and/or
quotes
• Some = three or more
messaging themes – doesn’t
necessarily need quotes
• Prominent = four or more
messaging themes, at least one
quote
Prominent (9), 9
Some (23), 23
None (12), 12
14. Sentiment Criteria
1. Were readers warned about potential
negative consequences of the merger?
2. Were any investors or organizational
reputations bad-mouthed or
discredited? (Heinz, Kraft, 3G or
Berkshire)
3. Was there any reference to
monopolization of the food industry?
4. Did the author use terms similar to
“cutting” and “loss” (as opposed to
“saving” or “improving margins”)?
1. Was there mention of the merger
ultimately benefiting the consumer re:
offer “healthier” or “better” products?
2. Was there mention of positive
economic impact?
3. Was there positive mention of possible
new job opportunities?
4. Did the author position potential job
losses positively (“improves margins”,
“saving” and “lean”)?
NEGATIVE
POSITIVE
15. Sentiment Results
Positive (5)
10%Negative
(6)
11%
Neutral w/Somewhat to
No Message Pull
Through (35)
67% Neutral w/
Prominent Messaging
Pull Through (4)
8%
Neutral w/ both
Prominent
Message and
Quote Pull
Through (2)
4%
Positive (5)
Negative (6)
Neutral (35)
Neutral w/ Prominent Messaging Pull
Through
Neutral w/ both Prominent Message and
Qupte Pull Through
16. Negative Article Analysis
• Consumer & Gaming
• Irish Independent
• National Post (Canada)
• Influencer rating: 76
• Circulation: 177, 782
• New York Post (regional)
• Influencer rating:85 with
• Circulation: 477,314
•The Charleston Gazette
• Influencer rating:67 with
• Circulation 32,755
• The Daily Telegraph
What they’re saying…
• “Buffett has found a way to outsource the
dirty work of restructuring and lay-offs”
• “Kraft faces job cuts and factory closures
like those 3G has carried out at Heinz”
• “The merger is expected to lead to job
losses in the US”
• “…likely to…fire much of its staff….”
Who’s talking…
17. Positive Article Analysis
• The Washington Post
• Influencer rating:98
• Circulation: 436,601
•Daily Mail
•Middle East North Africa
Financial Network
•Pittsburgh Post-Gazette
•Sunday Express
What they’re saying…
• “…saw the opportunity…as even more
compelling…”
• “The main emphasis…will improve margins
and create a lean organization”
• “With that leanness, the new company is
expected to invest in sprucing up its
healthful image”
Who’s talking…
18. Organic Themes
1. “Takeover” describes Heinz buying Kraft, not food
industry consolidation (18x’s)
2. Fear of job loss (12x’s)
3. “Aggressive” cost-cutting (8x’s)
4. Changing consumer taste preferences (13x’s)
5. Organic/smaller food companies attractive (6x’s)
6. Additional future acquisitions (3x’s)
7. Campbell’s snub (3x’s)
“The merger is
expected to lead
to job losses in the
US”
-- Irish Independent
22. Social Media Interest Over Time
www.google.com/trends - search kraft heinz, kraft, heinz
23. Social Interest by Region
Color saturation
represents density of
social commentary
regarding “Heinz”
“Kraft” and/or “Heinz
and Kraft”
www.google.com/trends -
search kraft heinz, kraft, heinz
24. Sources
Scott Olson/Getty Images
"A Handful of Companies Control the Food Industry." Food Convergence. Food Convergence, n.d.
Web. 30 Apr. 2015. <http://convergencealimentaire.info/>.
Image by Megan Pendergrass for “Kraft and Heinz merge to create food giant.” CNN Money. CNN
Money, Web. 25 Mar. 2015. Accessed 30 Apr. 2015.
<http://money.cnn.com/2015/03/25/investing/kraft-heinz-merger-3g-capital/>.
www.buzzomo.com - search kraft heinz merger
www.google.com/trends - search kraft heinz, kraft, heinz