Categories
Kraft Heinz

Kraft Heinz to Combine U.S. and Canada Businesses to Form the North America Zone

(BRK.A), (BRK.B)

The Kraft Heinz Company (which is 26.6%-owned by Berkshire Hathaway) will combine its U.S. and Canada businesses to create the North America Zone, which is expected to be effective in the second fiscal quarter of 2022.

The move is meant to advance the global food and beverage leader’s long-term, sustainable growth plans—which were first outlined at its Investor Day event in September 2020—by bringing increased agility to its innovation agenda, operations, and go-to-market approach.

The Company’s U.S. and Canada businesses accounted for approximately 80% of its 2020 consolidated net sales.

In the last 12 months, Kraft Heinz has taken multiple steps to transform its overall growth profile, strategic focus, and financial flexibility, including divesting certain assets in its global cheese and nuts businesses. The Company has also centered its business around a consumer-first approach, significantly investing in its portfolio, digital solutions, customer relationships, and people.

The Company believes the creation of the North America Zone will further fuel Kraft Heinz’s vision to leverage its scale through improved agility for competitive advantage. Structural changes to support the strategic plan are aimed at streamlining and synergizing the U.S. and Canada businesses. This evolved model is expected to help the North America Zone pilot high-value products, processes, and service innovations, backed by the resources of the two countries, while also increasing speed to market.

“As consumer, customer, and employee needs change, we must be in a position to anticipate, adjust, and respond with speed,” said Miguel Patricio, Chief Executive Officer of Kraft Heinz. “Combining our U.S. and Canada businesses—two dynamic Zones—gives us a distinct advantage and will produce faster, more effective results so we can continue investing in our strategic plan and driving sustainable growth. While this is an evolution to our structure, it is part of a broader revolution in how we will work at Kraft Heinz going forward.”

As a result, the following leadership changes are being made:

• Kraft Heinz’s new North America Zone will be led by Carlos Abrams-Rivera, currently U.S. Zone President. Since joining Kraft Heinz in February 2020, Abrams-Rivera has been instrumental in reigniting growth in the U.S. business, the Company’s largest Zone. Abrams-Rivera will assume the title of North America Zone President.

The North America Zone structure will include three commercial business units that will be organized around the Company’s consumer-driven product platforms and geographic needs, including:

• Taste, Meals, and Away From Home will be led by Pedro Navio, currently President of Latin America, and includes the Taste Elevation and Easy Meals Made Better consumer platforms as well as the U.S. foodservice and ingredient businesses

• Fresh, Beverages, and Desserts will be led by Steve Cornell, currently President – Enhancers, Specialty, and Away From Home, and includes the Fast Fresh Meals, Easy Indulgent Desserts, Real Food Snacking, and Flavorful Hydration consumer platforms

• Canada and North America Coffee will be led by Adam Butler, currently President – Kids, Snacks, and Beverages

The Company is also pleased to announce the appointment of Robert Scott as President of Research & Development – North America.

Scott joins Kraft Heinz from Abbott Nutrition where he most recently served as Divisional Vice President of Global Product Development. In this role, he successfully delivered a wide range of product solutions that met the diverse needs of consumers and retailers, as well as led the development of products to support Abbott Nutrition’s medical, institutional, and clinical businesses globally. Prior to Abbott Nutrition, Scott was Vice President of Research & Development- Latin America for The Coca- Cola Company where he delivered consumer-centric product innovations, as well as packaging solutions to support environmental and sustainability goals.

In his new role at Kraft Heinz, Scott will be tasked with leading Research and Development for the Company’s core business, renovation and innovation agendas, and commercialization strategy. His proven success in building Research & Development teams around agile ways of working coupled with his deep understanding of next generation ingredients, packaging innovations, and nutrition makes him uniquely positioned to advance Kraft Heinz’s North America portfolio strategy which is centered around creating more sustainable solutions.

Long-time Company executive Bruno Keller, currently Canada Zone President, will assume the position of President of Latin America, part of the Company’s International Zone.

Navio, Cornell, Butler, and Scott will report directly to Abrams-Rivera under the new structure.

The North America Zone will begin structural transitions in early 2022 with full organizational and financial reporting changes expected to take effect at the start of its second fiscal quarter next year.

© 2021 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
NetJets

NetJets Returns to China Market With Amber Aviation Partnership

(BRK.A), (BRK.B)

Berkshire Hathaway’s NetJets is returning to the China market by partnering with Shenzhen, China-based Amber Aviation. The partnership will see NetJets provide up to 20 aircraft to Amber, with the first aircraft to be delivered in April 2022.

The partnership will be part of a new Jet Card, membership club and shared lease programs. In addition to planes, NetJets will also provide service support, sales assistance, product design and legal support.

“This partnership with Amber Aviation offers NetJets a unique opportunity to provide long-term service in the Asian Market to our owners,” said NetJets Chairman and CEO Adam Johnson. “The team at Amber Aviation shares NetJets’ commitment to safety and service, and is a truly collaborative partner that we look forward to working with alongside our respected co-investors.”

Amber Aviation chairman Chang Qiusheng first joined the aviation sector in 1981 and has served in various management positions in the field for over 30 years. Prior to founding Amber Aviation, Mr. Chang established Business Aviation Asia Limited where he served as Chairman and General Manager. He guided the firm to become the largest business jet management company within a period of ten years. Mr. Chang has also served in senior management positions in Beijing Air China Aviation Service Corp., Air China VVIP Office and Air China Business Jet.

This is not the first go around for NetJets in China. NetJets previously had a China joint venture formed in 2012 with Hony Jinsi Investment Management (Beijing) Ltd and Fung Investments, but the partnership was scrapped in 2017.

© 2021 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
Lessons From Warren Buffett

Lessons From Warren Buffett: You Cannot Get Rich With a Weather Vane

There is a never ending stream of investment advice and opinion, and there are lots and lots of investing approaches, but one thing Warren Buffett is very clear on is that constantly changing your strategy based on what people are saying is not the path to wealth.

“You cannot get rich with a weather vane,” Warren Buffett said at the 1994 Berkshire Hathaway Annual Meeting. “Anytime I see some article that says, you know, these analysts say this or that about some business, it just, it doesn’t mean anything to us.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2021 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
Appointments McLane

McLane Grocery Names New President

(BRK.A), (BRK.B)

Berkshire Hathaway’s McLane Company, Inc., a leading supply chain services company providing grocery and foodservice solutions, has appointed Chris Smith as its new President of McLane Grocery, a $33 billion business unit providing supply chain solutions to over 70,000 retailer locations.

Before joining McLane Company, Smith worked at Walgreens Boots Alliance, a global leader in retail pharmacy, as the Senior Vice President – Chief Supply Chain Officer. He oversaw supply chain functions for 9,200 U.S.- based Walgreen stores through 16 distribution centers and 9,000 warehouse employees. Before Walgreens, he served as the Executive Vice President – Chief Supply Chain Officer at C&S Wholesale, the largest grocery wholesaler in the country. Smith has also held senior leadership positions in distribution and logistics with McKesson Corporation, a Texas-based leader in healthcare.

“We are very pleased to have Chris join our team,” said McLane Company CEO Tony Frankenberger. “He brings a wealth of supply chain and logistics leadership experience across diverse industries that will contribute to many areas of our business.”

Smith has a Bachelor of Arts in Economics from the University of Massachusetts Amherst and serves on the board of Phillips Pet Food & Supplies.

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 a 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

Berkshire Hathaway-backed BYD Sells 70 More eBuses to Finland

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD, the world’s leading eBus manufacturer, has secured another high-volume order for its zero-emission electric buses from Nobina in Finland. Nobina, the largest public transport operator in the Nordic region, has ordered a further 70 latest generation BYD eBuses in a strategic move to expand its fast evolving “green fleet.”

This latest order from Nobina Finland spans two of BYD’s best-selling electric bus models, comprising 42 units of the 42-foot bus model and 28 units of BYD’s 50-foot model. They are scheduled for delivery next summer, 2022 and will primarily operate on city routes in the Helsinki Metropolitan area.

The electric buses benefit from the latest generation BYD Iron-Phosphate Battery technology for optimized battery life and a longer driving range. The 42-foot model delivers a single charge range of 250 miles, while its larger 50-foot counterpart enjoys over 280 miles.

This is Nobina Finland’s second major order for BYD pure-electric buses, having taken delivery of 119 units in the summer of 2021. Combined, these buses have quietly and cleanly driven more than one 620,000 miles in Finland, saving 1400 tons of CO2 emissions. BYD is pleased and proud to support Nobina Finland on its green journey.

Nobina is a high-profile name in sustainable public transport throughout Scandinavia and, like BYD, places great emphasis on reducing pollution and protecting the environment.

The successful commercial relationship between Nobina and BYD, which initially started in 2015, continues to flourish as a result of the close synergy between the two brands and their core values in driving a greener world. Nobina currently has over 300 BYD electric buses operating in towns and cities across Sweden, Norway and Finland.

BYD buses are living up to their reputation for reliability in tough climatic conditions as demonstrated by those vehicles operating in the town of Piteå in North East Sweden. Close to the Artic Circle, Piteå with a latitude of 65.31° north, is the most northerly location in Europe. Thirteen 40-foot buses are in operation in this area following their delivery in May 2021.

Petri Auno, CEO, Nobina Finland, said: “Nobina is totally committed to sustainable transportation and this latest order for additional BYD electric buses is a testament to our strategy to replenish our fleet with clean, zero-emissions solutions that are kind to the environment. We continue to select BYD buses based on their excellent track record for reliability, operational efficiency, performance, safety and of course, for the comfort they provide to our passengers. BYD buses now account for 25% of our Nobina Finland fleet and we look forward to enhancing this in the future.”

Isbrand Ho, Managing Director, BYD Europe B.V., said: “We are delighted to have been awarded another prestigious order from Nobina Finland. Scandinavia is fast embracing eMobility, as demonstrated by the many hundreds of BYD eBuses already in operation across the Nordics. As an established and valued customer, with whom BYD shares so many environmental and ethical values, we are very pleased to support Nobina’s sustainable goals as it continues on its green, electric journey.”

Around 600 BYD electric buses have either been delivered, or are on order, from public transport operators and authorities across 20 cities in the Nordics. These pure-electric, eco-friendly buses have clocked up more than 18.6 million zero-emission miles, reducing CO2 emissions by 32,000 tons.

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares for $232 million. It’s an investment that has paid off handsomely. Berkshire’s original investment of $232 million had grown in value to $5.897 billion as of December 31, 2020.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a 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
Lessons From Warren Buffett

Lessons From Warren Buffett: The Fact That a Part of the Market Is Kind of Screwy, That’s Unimportant to Us

To some investors, “meme stocks” that are bid up to the stratosphere, or stocks with no earnings that have sky-high valuations, or other examples of wild speculation, are a warning sign that they should get out of the market, or at least move to a more conservative position. However, crazy behavior is not of great concern to Warren Buffett, and as he pointed out, long before meme stocks, that speculation is not a new part of the market and that he has seen an awful of it over the course of his lifetime. “We’re trying to find wonderful businesses. And the fact that a part of the market is kind of screwy, that’s unimportant to us,” Buffett noted.

“Throughout the careers Charlie and I have had in investing, there have always been hundreds of cases, or thousands of cases, of things that are ridiculously priced, and phony stock promotions, and the gullible being led in to believe in things that just can’t come true.” Warren Buffett said at the 1996 Berkshire Hathaway Annual Meeting. “So that’s always gone on. It always will go on. And it doesn’t make any difference to us.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2021 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 Partners With Sunnova to Provide Solar and Storage Solutions

(BRK.A), (BRK.B)

Berkshire Hathaway’s Intero, a wholly owned subsidiary of HomeServices of America, Inc., has partnered with Sunnova Energy International Inc. to provide Intero clients with easy access to reliable solar and energy storage solutions.

With continued stress on the energy grid and the increased adoption of battery-powered vehicles, residents throughout the Bay Area are actively searching for reliable energy solutions. This new partnership will allow Intero agents to help their current and past clients quickly connect with Sunnova so they can receive the unrivaled service that is synonymous with Sunnova’s brand.

“At Intero, we help our agents extend their client relationship beyond the transaction,” said Scott Chase, Chief Operating Officer of Intero. “Our goal is to provide partnerships that differentiate our agents from the competition and improve the client experience. Our local power grid is old and unreliable and anyone who has lived here long enough has experienced outages. New home owners want lower energy costs, back-up battery power and EV charging. After researching this space, it became crystal clear Sunnova was the obvious choice to help us deliver on these concerns.”

“California is a key market for Sunnova, and we look forward to providing Intero’s clients with a convenient clean energy service that can improve the value of their home and help power their energy independence,” said Michael Grasso, Executive Vice President, Chief Marketing and Growth Officer at Sunnova. “With continued blackouts and brownouts due to wildfires in California, now more than ever before new homeowners need reliable and resilient energy services to live life uninterrupted.”

Sunnova can help Intero clients with the following services:

• Home Solar
• Home Solar + Battery Storage
• Home Solar + EV Charger
• Add-on Battery Storage
• Home Solar Protection

© 2021 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
Appointments Berkshire Hathaway Specialty Insurance

Berkshire Hathaway Specialty Insurance Announces Two Promotions in UK

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance has promoted Chris Warrior to Head of Executive & Professional Lines in the UK, and named Jessica Kirby as Head of Commercial Management Liability Insurance in the UK.

“BHSI has a rigorous recruiting process that enables us to build our global team with individuals who possess both exceptional capabilities and strong character,” said Vanessa Maxwell, Country Manager, UK, BHSI. “And with our deep bench of talent, we are pleased to be able to give our teammates excellent opportunities to advance in our nimble and always growing organization. I look forward to seeing all that Chris and Jess will achieve for BHSI and our E&P lines customers in their new roles.”

Chris joined BHSI in 2019 as Head of Management Liability for the UK and Ireland. In his new role, he will oversee BHSI’s UK team and portfolio across all Executive & Professional Lines, including Management Liability as well as Professional Indemnity, Cyber and Transactional Liability Insurance. Chris has nearly two decades of experience underwriting in the UK marketplace.

Jess Joined BHSI in 2018 as Senior Underwriter, Commercial D&O. In her new role as Head of Commercial Management Liability for the UK, she will oversee the team and portfolio she has played a critical role in building for BHSI in the UK. Jess has nearly 15 years of experience in the UK Financial Lines market.

© 2021 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

Berkshire-Backed BYD’s HAN EV Enters Dominican Republic

(BRK.A), (BRK.B)

Berkshire Hathaway-backed BYD has announced that its flagship NEV sedan, the Han, has debuted in the Dominican Republic.

The BYD Han has already arrived in Brazil, Mexico, Colombia, Uruguay, Costa Rica, and the Bahamas. The official launching in the Dominican Republic sets another important milestone for BYD in the LATAM and the Caribbean passenger vehicle market.

As the world’s first mass-produced model that applied BYD’s ultra-safe Blade Battery, the HAN EV can achieve 0-100km/h acceleration in 3.9 seconds. The intelligent electric high performance AWD HAN EV boasts a range of up to 550 km（NEDC test cycle) with a drag coefficient of 0.233 Cd which can reduce power consumption while improving driving range.

Nelson Peña, President of Peravia Motors S.A. says, “People’s preference for fuel vehicles is one of the main reasons for global warming. This is why we want to provide new energy solutions and always abide by the highest standards for technologies, safety, and warranties.”

“BYD is one of the most valuable NEV brands in the world and it plays a key role in the EV market. Therefore, we decided to introduce BYD EVs into the Dominican market,” says Sebastián Peña, BYD Brand Leader and Business Director in Peravia Motors S.A..

To protect the forests and ocean in this country, the Dominican government issued Decree 103-13 in 2013, which declares that the customs duties and value-added taxes on electric vehicles will be reduced to 50% of that of the fuel vehicles for the development of clean energy.

About BYD

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares for $232 million. It’s an investment that has paid off handsomely. Berkshire’s original investment of $232 million had grown in value to $5.897 billion as of December 31, 2020.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a 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
Lessons From Warren Buffett

Lessons From Warren Buffett: Study Folly

Warren Buffett has learned a lot over the years from studying the mistakes that other people have made. In fact, he and Charlie Munger are students in the study of folly.

“In terms of reading of financial history and all that sort of thing, I’ve always been absolutely absorbed with reading about disasters,” Warren Buffett said at the 2012 Berkshire Hathaway Annual Meeting. “And there’s no question. I mean, when you look at the folly of humans — you know, I’ve focused on the folly in the financial area — there’s all kinds of folly elsewhere — but just the financial area will give you plenty of material if you like to be a follower of folly. And I do think that understanding, and that’s what gave us some advantage over these people that have IQs of 180, you know, and can do things with math that we couldn’t do. They just, they really just didn’t have an understanding of how human beings behave and what happens. 2008 was a good example of that, too. So, we’ve, we have been a student of other people’s folly, and it’s served us well.”

Hear Buffett’s full explanation

See the complete Lessons From Warren Buffett series

© 2021 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.