What's up with McDonalds, have they shot themselves in the foot?

What is it with these guys at the helm of McDonalds Corporation anyway? Have they gone completely crazy?

On October 25th McDonalds announced in what many are calling the "Divorce of the Century" that they are ending their 40 year relationship with H. J. Heinz over differences with the company's new management. These so-called differences look much more like wounded pride, ego, vanity or simply a childish tantrum to me. The real problem is that Heinz was recently purchased by Warren Buffet held Berkshire Hathaway and 3G Capital who already owns McDonalds' major competitor Burger King. Brazilian born Bernardo Hees, Burger King's former CEO has been made CEO of Heinz and there lies the real root of the problem. Like a typical petulant child, McDonalds has simply decided to pick up their ball and bat and go home.

It is not by accident that Heinz Tomato Ketchup is the world's most famous and highest selling brand. While I'm neither a big fan of McDonalds nor of ketchup, I do consume their products and I tend to agree with the statement of the millions of loyal Heinz customers who say it is simply the best tasting and highest quality ketchup in the world. I think that it is rather obvious that it is a big stretch to think, as McDonalds states, the change will have no impact. Well, maybe not in the USA where there are really only two markets using Heinz, but in Canada and many other countries including Brazil Heinz Tomato Ketchup is still served in all McDonalds outlets. It was chosen by McDonalds in the beginning because it was simply the best, and McDonalds has proudly claimed from the outset that they used only the very best products as ingredients in their meals. So what has changed? If this statement still holds true for the restaurant chain, then why the change - Heinz is still obviously the best, so they haven't changed. The only difference is who is now at the helm.

It is painfully obvious to even the casual observer that this is nothing more than McDonalds Corporation's desire to have absolutely nothing to do with Burger King, no matter how remote that link might be. I personally think that it is not only a childish attitude, but that it is also extremely poor business sense.

For years now vegan and vegetarian groups, animal rights groups, health food fanatics and various other wacky fringe groups have been taking pot shots at McDonalds, making all kinds of lunatic claims about the Corporation, its practices, the ingredients and anything that they can toss out in the rumor mill. McDonalds has always responded to issues surrounding their ingredients that they always source the absolute best, purest and highest quality products available to use in their meals. Now that clearly doesn't seem so true anymore.

Why, while they're in the cross-hairs of every loonie-toon interest group on earth would McDonalds intentionally do something that they must know is going to alienate customers who have been loyal to them despite all the rumors and insinuation? There is absolutely no logic in it whatsoever. There is absolutely no doubt that many of their customers will switch over to Burger King who still uses Heinz Ketchup, BBQ Sauce, etc.

If Buffet and 3G were to buy out Hellman's/Best Foods or French's would McDonalds stop using those products in all their restaurants too? Maybe yes! Which leaves me wondering why don't they do just that, force McDonalds' hand to drop those other popular brands too and put them on the ropes, just like some has-been boxer up against the new contender for Heavyweight Champion.

Poor Ray Kroc, he would be rolling over in his grave if he could see what these blockheads are doing to all the hard work he did to launch the chain and make it the worldwide success that it presently is. In my opinion, that's a position that might not be so invincible as it once was.

  Cheers, 
  William James Woodward, Brazil & Canada Expert - Expat-blog Team