Why Is McDonald's Dropping Heinz?

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Oct. 28 (Bloomberg) -- Bloomberg's Duane Stanford reports on McDonald's plans to stop using Heinz ketchup. He speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Keys who ran burger king and he was quite aggressive against mike donald's during his tenure.

Right, they don't want to catch up suppliers or executives who were going after them previously.

Burger king has been adding menu items aggressively and trying to go after mcdonald's business in the u.s. after languishing.

You have seen various things like new french fries.

Satis fries.

That is going after that whole health marketing.

Supposedly 30% less calories.

With that kind of aggressiveness, they just don't want that kind of cross relationship going on.

Was the satisfry one of bernard keys' project?

No, the new ceo took that over.

It is more of the same from burger king where they are going after mcdonald's business to be a more formidable competitor especially in the u.s. i talked to mcdonald's on friday part of their emphasis was they had already been reducing the reliance on heinz.

They say most of it is overseas.

Had they already been easing it out anyway?

Yes, over time, you want different vendors handling different parts of the world where it makes more sense.

You also don't want all your eggs to be in one basket or all your catch up in one refrigerator.

A lot of that has been happening.

Most of the businesses overseas with heinz and not so much in the u.s. do we know who their biggest provider of catch up is?

We are trying to find that out.

We don't know.

I think it is more diversified than a single vendor.

Right, you mentioned what burger king is doing.

Are they gaining any headway against mcdonald's? it's hard to compare the numbers.

Burger king is right at but we have seen companies like mcdonald's hurt by this microenvironment and consumers are pulling back as they are not certain about what will happen in the economy.

Mcdonald's recently said their u.s. sales have slowed over the previous quarter.

Local revenue was a little bit up from last year but they and burger king and everyone else are fighting for consumers.

You are not necessarily adding more eating occasions, about stealing from each other.

That's what it seems like, thank you.

Staying with the consumer, there's a couple of new flavors for soda stream, the company that lets you make carbonated soft drink at home.

It is part of a marketing deal with " time magazine." they will be cobranded with " cooking light" magazine and is pushing more brand awareness in the united states.

The company ran a commercial earlier this year in the super bowl targeting coca-cola and pepsi.

Coming up, apple reports earnings after the bell today and the results are likely to disappoint investors.

We will tell you what could rock apple to its core.

This text has been automatically generated. It may not be 100% accurate.


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