Buffett and Lemann deal with Heinz in visit to Ambev

Some of the steps to transform the food multinational Heinz in a company with the face of Brazilian Jorge Paulo Lemann, Marcel Telles and Beto Sicupira, 3 g Capital Fund, were given yesterday during the day when Warren Buffett, partner of Lemann in Heinz, was in Brazil, in visit to Ambev, in São Paulo.
The brewery is the ultimate expression of the model will be replicated in the food company acquired by 3 g and by investor three weeks ago. Buffett came not just to see the celebrated model Ambev, but mainly to better understand where (and what) what has been done in the new administration of the Ambev manufacturer of ketchups, according to people close to the investors.
Under total secrecy and heavy security, Buffett's presence here was also being interpreted by the market yesterday, says a source, sort of like Buffett to support 3 g partners at a time when Burger King and Heinz-two of the core businesses of 3 g-are at the Centre of an investigation by the SEC, the supervisory organ of the American capital markets, by misuse of inside information.
Research involves financial market operators, and not the companies. The visit would be a sign that the two partners are working together and lined up, according to this source.
Yesterday morning, Jorge Paulo Lemann, Marcel Telles, two of the three founding partners of 3 g Capital, followed Buffett in visit to the headquarters of the brewery, in the southern area of São Paulo. He was the President of Ambev, Joao Castro Neves and Nelson Jamel, Chief Financial Officer. Brewery executives also met in the morning with some directors of frontline investment fund Berkshire Hathaway, Buffett.
Marc Hamburg, head of the financial area of Berkshire Hathaway, was in the company along with the American investor. Lemann, who lives in Switzerland, arrived in Brazil on Tuesday to prepare the visit of Buffett, who returned to the United States last night. Information circulated in the market yesterday that the financier could visit Ambev's factories and other businesses of 3 g, such as Burger King, but source of fast-food denied the visit.
The partnership of 3 g and Buffett partners, and consequently the presence of financier around here, is seen as a seal of the management model of the trio of partners. Not only on rare occasions Buffett joined some company in a takeover, as it's rare to see him visit management models in the world (the closest, Buffett refers to Lemann as "the professor"). With Ambev, what worked was a set of actions replicated today at Burger King-and to be copied at Heinz in the coming years.
Very lightweight framework, expenditure constant reassessment and appreciation of those who work hard guiding the Brazilian management model. As a backdrop, is the need to transform Heinz in a larger company than she is not that the company is in bad situation. "The company is well managed, I see no problems," said Beth Loewy, the broker Sturdivant & co. is that Heinz could be more efficient.
The costs, for example, have grown two years ago, at least at the same speed of sales, according to results of Heinz stock. This must be one of the focuses of the work to be done going forward by new managers. There is an expectation that the 3 g put a President of their confidence ahead of Heinz, paving the way for the entry of other executives linked to 3 g in the company.