(Reuters) -Packaged foods giant Kraft Heinz said it was looking at strategic transactions as consumer demand for its pricey snacks and ready-to-eat meals weakens due to an uncertain economic environment and high inflation.
The company has been looking for potential merger and acquisition opportunities “over the past several months”, chief executive officer Carlos Abrams-Rivera said in a statement.
Consumers are turning to healthier processed food products and a surge in the use of weight-loss drugs has also cast a shadow on demand for packaged foods. Additionally, tariffs were adding to Kraft’s woes as it lowered its annual organic sales and profit forecasts last month.
Its hot dogs and cold cuts business, Oscar Mayer, was attracting interest from several buyers for a deal that could be worth $3 billion, Reuters reported in October last year.
The company declined to comment further on the nature of the strategic transactions.
Kraft Heinz also said Timothy Kenesey and Alicia Knapp, executives at Berkshire Hathaway-owned companies, were leaving the board of directors after Warren Buffett’s conglomerate said it would no longer hold board seats.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Vijay Kishore)
