Kraft Heinz (Writedowns)

Kraft Heinz's $15.4 billion writedown in 2019 demonstrates how zero-based budgeting can destroy brands. 3G Capital's aggressive cost-cutting saved money but starved marketing and innovation. When consumers moved to fresher brands, Kraft Heinz had no response. Like an organism that stops eating to save energy and then can't hunt, Kraft Heinz's efficiency became its weakness.