Food sector connects four huge investors

William Ackman has reached the Office of Nelson Peltz, in 2007, with chocolate bars, soft drinks and an idea.
I was wondering if activist investor Peltz was interested in joining him to push for changes in Cadbury Schweppes, the iconic British chocolate and soft drinks.
But Peltz, veteran activist campaigns, was right in front of him. Peltz, one of the founders of Trian Fund Management LP, already had a plan in mind, the separation of the company's beverage business. The split, which was announced at the end of that year, paved the way for the purchase of a chocolatier, in 2010, by Kraft Foods Inc., a $ 19 billion.
Eight years later, Ackman back to follow in the footsteps of Peltz. His firm, Pershing Square Capital Management LP, revealed last week that it has accumulated a stake of $ 5.5 billion in Mondelez International Inc., in which Peltz has a seat on the Board of Directors. Ackman believes Kraft Heinz Co. could potentially buy the Mondelez, according to people familiar with the matter, a deal that would unite the extensive Empire of Kraft after being dismembered in 2012.
This time, the cast of characters is greater. Kraft Heinz is controlled by legendary Investor Warren Buffett and his company Berkshire Hathaway Inc., as well as by 3 g Capital Partners LP, the investment firm that counts among its founders with the richest man in the Brazil, Jorge Paulo Lemann.
The mutual interest reflects the evolution of the personal relationship of the four. Ackman is a follower of Buffett and has personal investments in 3 g Capital. Berkshire has become a source of funds for the recent 3 g business and Buffett and Lemann are close friends. Ackman and Peltz, though rivals maintain a cordial relationship and a mutual admiration that is reflected in a series of investments that overlap.
Also reflects the fact that investors believe that the packaged food industry is ready to generate money. For decades, companies in the industry bought and sold marks, they promoted mergers and divisions opened capital, closed and opened new capital capital. During all the time, and although some have the most iconic retail brands, they have faced difficulties to grow with changes in consumer preferences.
In the case of those investors, "everyone feels attracted by the same basic premise: these companies have lasting competitive advantages" and potential to create more value, says Ken Shubin Stein, Chairman of the Board of Spencer Capital Holdings, which has shares of Berkshire.
ENLARGE
If Kraft Heinz bought the Mondelez, the 3 g would become more a character in a long and winding story involving these investors and the handful of companies that today make up the Mondelez Kraft and Heinz.
Ackman has crossed the path of 3 g Capital in 2010, when he personally invested in a fund created by the 3 g to raise resources to close the capital of Burger King. Two years later, a "shell company" (company without assets or specific activity that captures resources and invests in a real-world business), whose owners included the Pershing Square, Ackman, merged with Burger King, allowing fast-food network return to the stock market.
Last year, Burger King merged the Canadian Tim Hortons coffee shops, business that was financed by Berkshire. The Pershing Square is still a major shareholder of the company resulting from such Union, the Restaurant Brands, along with Berkshire and 3 g Capital. The company's shares have risen more than 20% since being traded in December.
Ackman's investments and Peltz were crossing into other businesses, such as fast-food chain Wendy's and retailer Family Dollar.
The two were among investors pressured by the separation, in 2012, of the assets of Mondelez and Kraft, which merged with the Heinz, in a deal that was completed last month.
In the most recent connection that Web of investments is the 3 g.
The company's investments are financed by a group of wealthy investors and focus on an aggressive cost-cutting style. "These companies all have not become better all of a sudden, but the 3 g found a formula to generate more money with them," says one investor who has stakes in some of the companies that belong to the private equity firm.
Peltz and his partners noticed the 3 g Capital after the company joined the Berkshire Hathaway, in 2013, to buy the Heinz, the same company that the Fund had pushed in the past for Peltz reduce expenses.
The managers indicated by 3 g Capital embarked in an effort of deep cost cuts. The Trian estimates that under the command of 3 g, Heinz's profit margins jumped from 18% to 25%.
Peltz fell in love with the method of cost reduction, known as "zero base budget". Soon after Peltz became part of the Council of Mondelez, last year, the Mondelez reported that it would adopt the "zero-based budgeting".
The new owners of the Kraft Heinz — the 3 g and Buffett — and its cost-cutting pedigree explain in part prompting Ackman to take the idea to unite again to Mondelez to Kraft Heinz, according to people familiar with the matter.
Still, Ackman probably will face the skepticism of Lemann and Buffett. 3 g Capital is unlikely to explore a Mondelez Union and Kraft Heinz now, so soon after the merger that gave birth to the Kraft Heinz, say people close to the firm. Peltz, who signaled the desire to boost growth in the Mondelez through a merger, it may be easier to convince. Before joining the Council in January 2014, he pressed for the Mondelez fuse with the business of PepsiCo's snack foods Inc.