Britt sells KHC 69.99: This is not a bad thing for the shareholders of the new combined entity.

The takeaway here is that it looks like Buffet is at it again, and that the vast majority of the cost savings will come from a greatly reduced work force. Basically, the merger is one large cost cutting machine. The exact number has not yet been announced, and is again something we will have to wait for, but Kraft Heinz has stated that this final phase might have a multi-year implementation - presumably taking us to the 2017 year-end deadline we mentioned earlier. This brings us to the so called Integration Program phase, which is ongoing. In addition, Kraft Heinz closed six factories across the U.S., Canada and Europe during 2014, with total incurred charges of $102 million related to a further 1800 job cuts.


Nan:
We know that so called Phase 1 extended from April 29, 2013 to December 29, 2013 and during the first nine months of 2014. Across this period, the two companies shed a combined 4050 employees - primarily from corporate and field positions.

Tori:
The driving force behind the merger is cost cutting/saving - something at which we know Warren Buffet (who played a major role in the transaction via Berkshire Hathaway) is very effective.

Mable:
The combined results look like this: $7.1 billion in sales during Q2 2015, a decline on the $7.4 billion reported (combined) a year earlier.

Kitty:
Heinz net sales came in at $2.6 billion for the three months ended June 28, 2015, compared to $2.7 billion for the same period a year earlier.

Lyndia:
So with the company's first quarter as a merged entity just starting, what are we likely to see by next report, given what we already have now?

Jannie:
The only way earnings can really disappoint is a combined miss in cost reduction combined with a revenue miss, which is unlikely.

Nickie:
This sets shares up to jump on the next earnings release if the top line even slightly outperforms.

Augusta:
Mondelez is one of the most inefficient players in the food space.

Alyce:
So, Wall Street's mistake might be in underappreciating Ackman and Peltz's ability to cut costs.

Twyla:
It trails other major foods companies in terms of returns and cost structure.

Kraft Heinz Company (NASDAQ:KHC)
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