Kraft Heinz reveals SEC investigation for improper accounting policies in its procurement department

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Kraft Heinz has disclosed to have received a subpoena from the SEC in October 2018 as a result of its accounting policies in procurement. The company stated that it is investigating the matter and that it is planning to implement changes to its internal controls system. In addition to the SEC investigation, the company also disclosed a $15 billion impairment loss resulting from lower profitability prospects for some its brands. The SEC investigation, combined with the large impairment loss, has turned the attention on the cost-cutting strategy implemented by the Brazilian investment firm 3G Capital, who, together with Warren Buffett’s Berkshire Hathaway, has controlled the company since the 2015 merger between Kraft Foods and Heinz.

Financial Times, Alistair Gray and Leila Abboud, February 22, 2019 | Financial Times, Alistair Gray, February 22, 2019 | The Wall Street Journal, Annie Gasparro and Vipal Monga, February 22, 2019