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Kraft Heinz

Bernardo Hees Out, Miguel Patricio In As Kraft Heinz CEO

(BRK.A), (BRK.B)

The Kraft Heinz Company has announced that the Company’s Board of Directors has appointed Miguel Patricio as Chief Executive Officer effective July 1, 2019.

Mr. Patricio will succeed Bernardo Hees, who will remain CEO through June 30, 2019, to ensure a seamless transition.

“Miguel is a proven business leader with a distinguished track record of building iconic consumer brands around the globe, driving top-line revenue growth through a focus on consumer-first marketing, innovation, and people development,” said Alex Behring, Chairman of Kraft Heinz’s Board of Directors.

“I want to personally thank Bernardo Hees for leading the Company through its first phase,” said Marcel Herrmann Telles, a member of Kraft Heinz’s Board of Directors. “I’ve worked with Miguel over the course of the past 20 years, and he is a natural business leader. From attracting and nurturing the best talent to leading the turnaround of the AB InBev China business into the phenomenal success it is today, Miguel has one of the best brand-building minds in the industry.”

A native of Portugal, Mr. Patricio will join the Company after a successful career spanning two decades at Anheuser-Busch InBev (AB InBev), where he served as part of the Executive Leadership team in various positions, driving organic growth and industry-leading margins.

At AB InBev, Mr. Patricio served as the Global Chief Marketing Officer from 2012 to 2018. In this role, he helped develop and implement a strategic playbook for global brands Corona, Budweiser and Stella Artois, accelerating organic sales growth to high single digits. This represented more than one-third of AB InBev’s organic growth and accounted for more than 20 percent of AB InBev’s 2018 year-end global revenues. In his final year as chief marketer, AB InBev was the most awarded brand owner at Cannes Lions 2018, the global benchmark for effective creative marketing communications.

Prior to that, he was AB InBev’s President of Asia Pacific from 2008 to 2012 and President of North America from 2006 to 2008, providing him with deep experience in growing businesses in developed and emerging markets.

As President of Asia Pacific, Mr. Patricio set the foundation for the growth of the China business by defining a long-term strategy focusing on the premium market, growing Budweiser to become the leading brand in China, and expanding the growth of local brands such as Harbin. This led to the transformation of AB InBev Asia Pacific, which grew from revenues of $1 billion in 2008 to $2.7 billion in 2012, making it the number one beer company in China. Asia Pacific now represents approximately 15 percent of the company’s global revenue and 18 percent of global volumes.

Prior to AB InBev, Mr. Patricio has worked at other consumer companies including Philip Morris, The Coca-Cola Company and Johnson & Johnson in Latin America, New Jersey, and Georgia.

“Kraft Heinz is an incredible company with iconic brands that are loved around the world,” Mr. Patricio said. “It will be a privilege and an honor to lead such a talented group of employees as we focus on the consumer to capitalize on the growth opportunities that exist in the rapidly evolving food industry.”

“I would like to thank Bernardo personally, and on behalf of the Board, for his many contributions to Kraft Heinz over the last six years,” Mr. Behring added. “He helped transform the food industry by leading the acquisition of Heinz in 2013 and the merger of Kraft and Heinz in 2015. Under Bernardo’s tenure, Kraft Heinz achieved industry-leading margins and sales performance in line with its U.S. peers, developed an organization with best-in-industry quality standards, and built in-house capabilities for category management, including revenue and assortment management. We appreciate his contributions.”

“It has been an honor to serve as CEO of Kraft Heinz and to see it through its transformation over the last six years,” said Mr. Hees. “I have confidence that Miguel and the team will take Kraft Heinz to new heights.”

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past

Categories
Berkshire Hathaway Energy

NV Energy Battles to Keep Large Customers

(BRK.A), (BRK.B)

Working to stem the tide of defections of some its largest customers, Berkshire Hathaway’s NV Energy has received approval for a new rate structure that gives lower rates to large energy users.

NV Energy says it has had an “impressive response” to its proposed “NV Energy Optional Pricing Program Rate” that allows eligible large energy users to pay a rate derived from low-cost, Nevada-based solar resources.

Twenty-six large customers from both northern and southern Nevada have formally submitted their interest in the program. The customers include several government, education and other public entities, as well as gaming companies and heavy industrial users.

The pricing option will reduce the cost most eligible commercial customers pay for electric service while NV Energy retains the renewable energy credits in order to comply with Nevada’s renewable portfolio standard for the benefit of all customers.

The company declined to provide names of interested entities to protect customer privacy, however the City of Las Vegas is likely to be one of the entities, as Tenaska, the Omaha-based power provider that a provides electric service to MGM Resorts and Caesars Resorts, has withdrawn its bid to serve the city.

The “open window period” will remain open while the company undergoes a robust documentation process to validate the first-in-time, first-in-right priority order.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Acquisitions Real Estate

Berkshire Hathaway HomeServices New Jersey Properties Acquires Sea Girt and Shrewsbury Offices of Berkshire Hathaway HomeServices Signature Properties

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices New Jersey Properties has announced that they have expanded their market service areas in Monmouth and Ocean counties by acquiring the Sea Girt and Shrewsbury offices of Berkshire Hathaway HomeServices Signature Properties. With this acquisition, the company now has five Monmouth County offices and 21 in total in Northern and Central New Jersey.

“We are thrilled to align ourselves with the outstanding management and sales teams of the Sea Girt and Shrewsbury offices of Berkshire Hathaway HomeServices Signature Properties,” according to William O. Keleher, Jr., chairman and CEO of Berkshire Hathaway HomeServices New Jersey Properties. “Additionally, Bret Violette, former owner and broker-of-record, will continue to support the Sea Girt and Shrewsbury offices while also working closely with our management team, focusing his talents in many ways to assist us in the continued growth of our company.”

“By bringing a higher level of support and corporate services to our new Monmouth County offices, we are certain that we will create better opportunities for our sales associates and in turn, a more powerful value proposition for our clients,” states Christopher Brown, president and general sales manager of Berkshire Hathaway HomeServices New Jersey Properties.

© 2019 David Mazor


Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Real Estate

Real Living Leads Industry with Highest Customer Satisfaction, Again

(BRK.A), (BRK.B)

Allan Dalton, CEO, Real Living Real Estate, has announced that Real Living, the first national franchisor that gave clients the power to grade their customer service, received a 98% customer satisfaction rating for 2018, according to independent ratings service Quality Service Certification, Inc. (QSC). This is the second consecutive year that the Real Living Real Estate network placed well above the industry for customer satisfaction.

Through Real Living’s innovative Real Living 360 Service® program, network members ask customers to candidly rate the performance of their sales agent. QSC administers and validates these customer service satisfaction results following closed transactions for participating agents. Nearly 7,000 buyers and sellers were surveyed to measure the satisfaction of Real Living Real Estate network customers.

“It’s no surprise that the Real Living network scores so well,” said Allan Dalton, CEO, Real Living Real Estate. “Our Real Living network Lifestyle Advisors are well qualified to meet the unique needs of their customers.” Dalton added, “This distinction, plus our customized approach, puts our brand above the rest as demonstrated by the excellent results of this survey.”

In the results, a full 94% of home buyers and 91% of home sellers who worked with Real Living network sales associates reported being “very satisfied” with the results and service provided by their Real Living network real estate professional. According to the latest report from the National Association of REALTORS®, only 62% of buyers and 64% of sellers said they were very satisfied with the buying process and service provided by their real estate professional.

The survey also found that 97% of Real Living network customers surveyed said they would likely use the same sales professional in the future and would recommend the same professional to a relative or friend.

Chris Stuart, CEO, HSF Affiliates, congratulated the Real Living network for its QSC scores. “I’m so proud of our network of professionals for achieving these impressive results time after time.” Stuart added, “This record-high 98% satisfaction rating speaks to the passion and dedication of the network to provide only the very best in customer care.”

© 2019 David Mazor


Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
HomeServices of America

Intero Names New CEO

(BRK.A), (BRK.B)

Intero, a Berkshire Hathaway affiliate and wholly owned subsidiary of HomeServices of America, Inc., today announced that Brian Crane has been promoted to the role of chief executive officer and John Thompson has been named president of company.

One of the original founders of the company, Crane is a real estate veteran whose decisive leadership and collaborative approach have been integral to the year-over-year growth for which Intero is best known.

Over the course of his 17-year career at Intero, Crane has held a number of positions and most recently served as Senior Vice President of Strategic Relationships and manager of the Los Gatos office.

Also, effective immediately, John Thompson will take on the role of president and report to Brian. A founding member and former owner of the company, John has led Intero’s strategic planning and growth initiatives, as well as managed its day-to-day operations. Most recently, John was Chief Culture Officer and before that he managed the Los Altos office.

“I am humbled and honored by this promotion,” said Crane. “I look forward to leading Intero to new levels of growth and performance with the best and brightest professionals in the business – our outstanding agents, experienced leadership team and talented employees.”

“Brian and I have worked together since we founded the company,” said Thompson. “He has a deep understanding of the real estate business and I couldn’t be more excited to be playing a key role in this transition.”

“Brian and John make a great team,” said Gino Blefari, CEO of HomeServices. “I am confident that their extensive experience, fresh perspective and exceptional leadership qualities will help guide Intero into the future and position the agents for even greater success.”

“Brian and John are the right leaders to ensure that Intero is well-positioned for future growth,” added Ron Peltier, HomeServices’ executive chairman. “On behalf of HomeServices, we look forward to working with them in the months and years to come.”

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Minority Stock Positions Stock Portfolio

BYD Rolls Out World’s Longest Pure Electric Bus

(BRK.A), (BRK.B)

BYD (Build Your Dreams), a world leader and pioneer in battery and zero-emission vehicles, has debuted a three-section, 27-meter (89-feet) pure electric bus.

The double articulation bus is capable of transporting 250 people at a top-speed of 70 kilometers per hour (43 mph).

“Today, BYD once again uses its core technology, reliable products and innovative solutions to solve the two great urban ills of congestion and pollution,” Stella Li, Senior Vice President of BYD said. “The K12A will bring zero emissions to BRT systems, allowing passengers to enjoy quiet, pollution-free travel, while at the same time saving significant maintenance costs for operators.”

The bus can optimize it efficiency by switching between 2-wheel-drive and 4-wheel-drive.

The K12A is designed for lower-speed, high capacity operations, including airport shuttles and university campus routes where quick loading and high seating capacity are the most important factors.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
BNSF

BNSF Granted FAA Exemptions for its Drone Operations

(BRK.A), (BRK.B)

BNSF Railway has received an exemption from the Federal Aviation Administration’s (FAA) Extension, Safety and Security Act of 2016 so it can expand its drone inspection operations.

Under a pilot program approved by the FAA, BNSF has been testing drones for supplemental inspection of rail infrastructure.

The exemption allowed its drones to fly beyond visual line of sight. It includes a programmed aircraft with long-range flight plans to be flown autonomously and out of view of an operator.

Under the FAA exemption, BNSF has:

• permission to fly BVLOS flights below 400 feet above ground level because altitudes higher pose a risk of collision with other aircraft;

• an exemption from requiring a FAA airworthiness certificate because the aircraft does not create a hazard to users of national airspace system or the public;

• an exemption from certain maintenance requirements so that BNSF can conduct regularly scheduled maintenance and inspection in accordance with the drone operation manual; and

• permission for BNSF UAS pilots that hold a private pilot certificate and a third-class medical certification to conduct operations for compensation.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Minority Stock Positions Stock Portfolio

BYD Celebrates 300th Pure Electric Bus Built in Lancaster, California

(BRK.A), (BRK.B)

BYD (Build Your Dreams), a world leader and pioneer in battery and zero-emission vehicles, and the Antelope Valley Transit Authority (AVTA) celebrated two milestones: BYD’s 300th battery-electric bus built in Lancaster, California; and AVTA’s 1,000,000th electric service mile running BYD buses.

The AVTA serves the cities of Palmdale, Lancaster and Northern Los Angeles County, California.

Speakers included Lancaster Mayor R. Rex Parris, Palmdale Mayor Steven D. Hofbauer, Los Angeles County Supervisor Kathryn Barger, Deputy Consul General, Consulate General of the People’s Republic of China in Los Angeles, Shi Yuanqiang , and SMART Union Rep Willy Solorzano.

Two messages ran throughout the program: electric buses are good for the environment; and building them locally is great for our communities.

“We are very proud of this 300th American bus milestone. We are passionate about our mission to create a cleaner environment here in North America and across the globe,” said Stella Li, BYD President.

Lancaster Mayor R. Rex Parris added, “BYD has continuously shown its dedication to our community and region at-large, since establishing its North American manufacturing facilities here in Lancaster,” Parris said. “Along the way, BYD has established itself as the gold standard in the battery electric bus transportation industry. In fact, our local Antelope Valley Transit Authority (AVTA) will very soon have a 100% all-electric bus fleet.”

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Acquisitions Marmon Group

Marmon Crane Services Acquires Texas-Based Joyce Crane

(BRK.A), (BRK.B)

Marmon Crane Services has acquired Texas-based Joyce Crane. Marmon Crane Services is a unit of Berkshire Hathaway’s Marmon Holdings.

Headquartered in Longview, Texas, with additional locations in Texas, Arkansas, and Louisiana, Joyce Crane serves the heavy duty lifting and rigging needs of refineries, petrochemical companies, and power and manufacturing plants throughout the South and across the country.

“We are excited to welcome Joyce Crane and its employees to Marmon’s global portfolio of crane businesses,” said John Roberts, Sector President of Marmon Crane Service. “Joyce Crane is a company with a strong brand and an excellent service record, and we look forward to its continued growth under Marmon’s ownership.”

The company will continue to operate under the Joyce Crane name and brand. Staff and leadership, including founder Joe Bob Joyce, will remain the same with business support by Marmon Crane Services management.

“This is a very exciting time for Joyce Crane. This agreement is a positive move that will strengthen both companies and benefit all of Joyce Crane’s stakeholders, including our employees, clients, and vendors,” said Joe Bob Joyce, President. “We also remain steadfast in our commitment to the communities where we live and do business.”

Marmon Crane Services is headquartered in Chicago. The company owns and operates one of the largest fleets in the world with more than 1,200 mobile cranes. Its current companies include Procrane and Sterling Crane in Canada and the United States; Advantage Crane, based in Victoria, British Columbia; Freo Group, based in Kwinana, Western Australia; and WGC Cranes, based in Wollongong, New South Wales. Marmon’s crane business originated with Sterling Crane in western Canada in 1954.

Marmon Crane Services is part of Marmon Holdings, Inc., a Chicago-based diversified holding company with operations in 23 countries and 2018 revenues exceeding $8 billion.

Marmon Holdings is a subsidiary of Berkshire Hathaway Inc.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Berkadia

Berkadia Completes $26 million Sale of The Preserve at Collier Ridge

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has announced the $26 million sale of The Preserve at Collier Ridge, a 419-unit garden-style multifamily property in Fulton, Georgia.

Managing Directors Andrew Mays and Paul Vetter, Senior Director Judy MacManus and Director Matthew White of Berkadia’s Atlanta office completed the sale on behalf of the seller, Atlanta-based DRI Legacy, LLC.

The buyer was Montreal-based Frankforter Group.

“The property is located in a newly registered “Opportunity Zone” and proximate to the new $460 million UPS distribution facility which contributes to a strong value-add story for the property,” said MacManus.

“Currently 100 percent affordable with qualified contract eligibility, Preserve at Collier Ridge is a Section 42 LIHTC community that is eligible for market-rate conversion in 2021 and allows new ownership to benefit from substantial upside in the near future,” added White.

The Preserve at Collier Ridge features one-, two- and three-bedroom floor plans with dishwashers, garbage disposals, air conditioning and private balconies. Community amenities include a pool, a playground, laundry facilities and a picnic area. The new ownership plans to upgrade the existing fitness center and add both a business center and a community room. Located at 1021 Harwell Road NW, the property affords convenient access to Interstate 285.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), Berkadia is a third-party commercial mortgage servicer, as well as an approved lender for Fannie Mae, Freddie Mac, and HUD/FHA.

The company is among the top Freddie Mac and Fannie Mae multifamily lenders.

Berkadia owes its origins to GMAC Commercial Mortgage Corporation, which was acquired in 2009 by Kohlberg Kravis Roberts & Co., Five Mile Capital Partners LLC, and Goldman Sachs Capital Partners. Christened Capmark Financial, the company had $10 billion of originations in 2008 and a servicing portfolio of more than $360 billion before running into bankruptcy in October 2009.

In a deal approved by the bankruptcy court, Capmark sold its mortgage loan and servicing to the newly formed Berkadia in a deal worth $515 million.

The deal brought Berkshire into the heart of the commercial loan serving business, and the company has one of the largest commercial real estate servicing portfolios.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.