McDonalds is replacing Heinz as its supplier of Ketchup, for the fact that former Burger King CEO is now their employee. The fast-food giant said on Friday that it is cutting ties with the condiment company after 40 years due to its management changes there which has seen a former Burger King CEO became head of Heinz in June.

However the impact of this decision may be tasted more overseas as in the U.S., McDonald's uses Heinz products only in Pittsburgh and Minneapolis restaurants.
The change at Heinz came after the company was bought by Warren Buffett's Berkshire Hathaway and 3G Capital, a Brazilian investment firm, which also controls Burger King.
"As a result of recent management changes at Heinz, we have decided to transition our business to other suppliers over time," McDonald's Corp. said in a statement.
Heinz said that it does not comment on relationships with customers as a policy.
The Pittsburgh Company, which also makes baked beans, vinegar and other foods, is now led by Bernardo Hees. He still serves as vice chairman of Burger King's board and is also a partner at 3G Capital.
Which is clearly likely to create a conflict of interest as the two are rivals in business.
The 43-year-old Brazilian had become CEO of Burger King after 3G bought the struggling hamburger chain in 2010. He subsequently slashed costs, revamped the chain's menu and launched a major marketing campaign to help make it a more formidable threat to long-time rival McDonald's.
McDonald's won't give out numbers for the amount of ketchup it consumes globally, but in 2006, it reportedly used 250 million pounds of the stuff in the U.S,, only a small fraction of which came from Heinz. For a rough comparison, today Heinz says it sells 650 million bottles per year worldwide, which works out to 569 million pounds.
Heinz is likely not to lose that much as the company has grown far beyond its horseradish roots. Ketchups and sauces are the company's largest core category, but not ketchup itself; the company now has licensing agreements with restaurants like T.G.I. Friday's and owns lines of food like Ore-Ida potatoes, and makes diet foods like Smart Ones. The loss of one ketchup customer isn't going to hurt too badly.
With only a few rivals, McDonald's in-house ketchup may be the second biggest one. As a comparison, Heinz says it did $5 billion in sales for all ketchups and sauces in 2012, while ConAgra's Hunt ketchup only did $69.5 million between May 2011 and May 2012, and has 14.6 percent market share.
It is unlikely that Heinz will have a large drop in Ketchup sales, but with the new CEO in place, I’m sure it’s just a passing storm that the management had already foreseen.

What this means for Heinz.