American Food Company Kraft Heinz’ Second Largest Investor Sells Its 25 Million Shares
Workers at the Kraft Heinz booth count money at the shareholder shopping day as part of the Berkshire Hathaway annual meeting weekend in Omaha, Nebraska, May 5, 2017.

(Photo: REUTERS/Rick Wilking)

The Warren Buffet-backed American food company Kraft Heinz, maker of Philadelphia cream cheese, Velveeta cheese, Heinz Tomato Ketchup among others gets almost left behind by its 2nd-largest investor, the Brazilian private equity firm 3G Capital Partners, which sold its 25.1 million shares, leaving the business magnate as the owner of the only firm that has a big investment in Kraft which was left to drop as much as 3.4% in its stock valuation early Tuesday.

Warren Buffett's Berkshire Hathaway has about 26.7% of the company's shares.

The sale made by 3G Capital Partners was another shock that followed its 16% drop in August after Kraft reported a $1.2 billion write-down for some of its business ventures coupled with a large decline in sales missing analyst expectations.

However, the troubled company said that the sales were because of a "periodic liquidity window by 3G investors" stressing that the 3G fund has made the same sales before.

A spokesman from Kraft Heinz said that 3G stays as a long-term owner and "has no plan or intention of selling additional shares."

Even 3G co-founder and Kraft Heinz board member Jorge Paulo Lemann bought shares on Monday.

On why he bought more stocks, Lemann said he believes in the company's "potential for a turnaround."

Still, what makes the situation even trying for the company is it has an ongoing Securities and Exchange Commission investigation of its finances.

Kraft CEO Miguel Patricio said that the level of decline in the first half of 2019 "is nothing we should find acceptable moving forward" and that the company has major work ahead setting strategic priorities and changing the direction of the business.

About 9% of 3G Capital Partners' shares were slashed at $28.44 per share.

This amount is 2.6% lower from Monday's closing price which sealed the 31% decrease of the company year-to-date making it the fifth-worst performer in the S&P 500 market index.

The Brazilian company still has 20% shares of Kraft under its name even after the company faced not only the resignation of its CEO but a low sales as well.

As more people practice eating less heavily processed foods, this highlights the company's slow ability, unlike its rivals, to branch out.

General Mills, famously known for Häagen-Dazs ice cream and cereals like Cheerios, Cocoa Puffs, Lucky Charms, and Trix already bought organic mac and cheese maker Annie's back in 2014.

Even ConAgra didn't settle producing only cooking oil, frozen dinners, hot cocoa, hot dogs and peanut butter but also bought gluten-free food brand Udi's last year.

Making it even worse for food companies are the presence of Amazon and Walmart forcing everyone in the industry to lower their prices.