Kraft Food and Heinz Merge to form The Kraft Heinz Company

by Michela Galante , AdForum

The grocery game, already led by a handful of corporations with sprawling brand portfolios, is about to get a beefier new player.

Kraft Foods and Heinz announced today they will merge to form The Kraft Heinz Company, with an estimated $28 billion in annual revenue and eight $1 billion brands.

Backed by a $10 billion investment from Warren Buffett's Berkshire Hathaway and 3G Capital, the merger will pay out a $16.50 per share cash dividend to Kraft shareholders. Existing Heinz shareholders will own 51 percent of the new entity, the company said in its merger announcement. Read more on AdWeek.