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Is 3G the future of consumer firms?

With increased volatility, managements best suited to create moats around businesses might lose out to frequent changes

Illustration by ajay mohanty
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Illustration by ajay mohanty

Akash Prakash
The firm 3G Capital, a private equity shop, and its principals have an enviable track record in creating shareholder value across consumer businesses. They have been instrumental in creating and operating ABI (Anheuser-Busch InBev), the world’s largest brewer with 28 per cent global market share, Burger King (now Restaurant Brands International), and Kraft Heinz (KHC).

Across the three companies they have created significant shareholder value. This has come largely through margin expansion. In the case of ABI, US earnings before interest and taxes (EBIT) margins went from 23 per cent to 36 per cent. For Burger King earnings before interest, taxes,
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper