Kraft Heinz Stock Craters After Second-Largest Shareholder Sells 25 Million Shares

Shares of Warren Buffett-backed Kraft Heinz fell more than 4% on Tuesday, following the news that its second-largest shareholder has again trimmed its stake in the food company.

  • Brazilian private equity giant 3G Capital Partners, founded by Jorge Paulo Lemann, disclosed in a regulatory filing on Monday that it had sold 25.1 million shares, at a price of $28.44 per share.
  • The sell-off slashes 3G Capital Partners’ stake by roughly 9%, but they remain the second-largest shareholder, still owning about 20% of Kraft.
  • “3G remains a committed long-term owner of the Company and has no current plan or intention to sell any additional shares,” a Kraft Heinz spokesperson told Forbes. 3G founder and Kraft Heinz board member Jorge Paulo Lemann increased his own personal holdings of the stock by around $100 million; Lemann and certain other 3G partners will be acquiring nearly 30% of the offered shares, the spokesperson said.
  • The news follows a sharp decline in Kraft Heinz stock last month: Shares sank 16%—to a new all-time low, after the company reported yet another quarter of missed earnings, a large decline in sales during the beginning of 2019, and $1.2 billion in business write-downs.