Publications
Publications
- May 2020
- HBS Case Collection
Kraft Heinz: The $8 Billion Brand Write-Down
By: Jill Avery
Abstract
Teaching Note for HBS Case No. 519-076. On Friday, February 22, 2019, following an unexpected and disappointing earnings report, The Kraft Heinz Company’s stock price fell 27%, wiping out $16 billion in market value. CEO Bernardo Hees had announced that the company had taken a $15.4 billion asset write-down, that it would be cutting its annual dividend from $2.50 to $1.60 and that it was under SEC investigation for accounting irregularities related to its procurement process. $8.3 billion of the asset write-down was related to a loss in value of the firm’s intangible assets, most significantly of its Kraft and Oscar Mayer brands. As Kraft Heinz looked ahead to the future, it was time to recalibrate its brand management strategies. With $50 billion in intangible assets remaining on its balance sheet, effectively managing its brands going forward was critical to avoiding another brand asset write-down and to regaining the $8 billion in brand value the company had just lost.
Keywords
Marketing; Marketing Strategy; Brands and Branding; Consumer Products Industry; Food and Beverage Industry; United States
Citation
Avery, Jill. "Kraft Heinz: The $8 Billion Brand Write-Down." Harvard Business School Teaching Note 520-114, May 2020.
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