Warren Buffett

Kraft Heinz replaces CEO with AB InBev's former marketing chief

Boxes of Kraft Macaroni & Cheese Dinner are seen in a pop-up store of Kraft Heinz
Photo: Alex Wong/Getty Images

Kraft Heinz will replace CEO Bernardo Hees, who has led the company since its creation in a 2015 merger of Kraft and Heinz that was arranged by Warren Buffett and private equity firm 3G Capital, with AB InBev's former chief marketing officer Miguel Patricio, effective July 1.

Why it matters: It's the most significant leadership change since the merger, and it comes at a crucial time. Kraft Heinz has been struggling in recent years, with a failed bid for Unilever, stagnant sales, a $15.4 billion writedown of key brands and an SEC investigation into accounting practices.

Warren Buffett says the wealthy are "definitely undertaxed"

Warren buffett in a suit
Warren Buffett. Photo: Lacy O'Toole/CNBC/NBCU Photo Bank via Getty Images

Warren Buffett told CNBC on Monday that the wealthy are "definitely undertaxed" compared to the rest of the U.S. population, advocating an income tax credit as "the best way" to address the issue.

Details: Buffett also admitted that Berkshire Hathaway overpaid for its stake in Kraft Heinz, which saw its stock implode last week after terrible earnings results. He told CNBC, "It's still a wonderful business in that it uses about $7 billion of tangible assets and earns $6 billion pretax on that. But we, and certain predecessors, we paid $100 billion in tangible assets. So for us, it has to earn $107 billion, not just the $7 billion that the business employs."