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The New York Times reports this morning that Kraft Heinz announced “a multibillion dollar write-down signaling a plunge in the value of some of its most famous brands” while at the same time saying that it “received a subpoena from the Securities and Exchange Commission related to an investigation into the company’s accounting and controls.”

According to the story, “The huge write-down appears to come from a shift in how consumers eat, emphasizing fresh food over processed products. The write-down reduced the value on the balance sheet of United States and Canadian operations and the Kraft and Oscar Mayer trademarks, the company said.”

And, the Times writes, the SEC investigation seems to be related to decisions made after the 2015 merger of Kraft and Heinz. The story says that “Kraft Heinz said that the regulator looked at ‘agreements, side agreements, and changes or modifications to its agreements with its vendors.’ With external accounting and legal advisers, Kraft carried out an investigation that led to it recording a $25 million increase in costs in the fourth quarter. The company said it should have recorded the $25 million in earlier periods.”
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