Two weeks after shareholders signed off on a tie-up between Kraft and Heinz, the company has announced a move that will bring its Kraft headquarters from the northwest suburbs of Chicago into the city itself.
The food company, which will have combined annual revenue of about $28 billion, signed a long-term lease agreement for five floors of the AON Center on the north side of Chicago’s Millennium Park, according to spokesman Michael Mullen.
Chicago was where founder J.L. Kraft first started selling cheese to local merchants in 1903, Mullen said.
Kraft Heinz is the latest in a string of companies to move their corporate headquarters to Chicago in the four years since Mayor Rahm Emanuel took office.
This time, Chicago’s gain is suburban Northfield’s loss.
Emanuel basked in the glow of the his latest victory after a news conference at Westinghouse High School on Thursday to announce his leadership team at the financially strapped Chicago Public Schools.
“We’ve had companies from around the globe as well as around the country relocated here. What it does mean is, if you live in New York, London, Beijing, Berlin — watch out. Chicago’s coming for ya’,” the mayor bragged.
Emanuel was particularly proud that Kraft Heinz signed a lease to occupy five floors and 170,000-square-foot Aon Center, 200 East Randolph, without requesting or receiving any subsidies or tax incentives from the city.
“Here’s the news: Kraft’s gonna move their headquarters into the city of Chicago. The worldwide headquarters will be now shared between Chicago and Pittsburgh. This is an additional, not only corporate headquarters, but jobs and economic growth that provides for Chicago,” he said.
“Two years running, Chicago is the lead city for corporate relocations. This accomplishment of a Fortune 50 company will add to that strength for a third year. All companies — big, medium and small — have all seen the same thing that I continually talk about. Which is, strength of the educated and skilled workforce that we have.
Emanuel noted 36 percent of Chicagoans are college graduates compared with 27 percent nationwide. Chicago also has an “open partnership” between the public and private sector, along with a transportation system “that allows you to get anywhere in the world from here, and anywhere in the world to Chicago.”
“That ability allows us to attract a world-class company. And in the conversations I had with the new CEO, they saw Chicago, a world-class city with world-class culture and world-class talent as the headquarters they want for a world-class company that has a world reach,” the mayor said.
“We’re unique and this will then continue to allow us to get the investments we need and the partnerships we need to grow the city of Chicago.”
NEIL STEINBERG: Memo to Kraft employees: Courage.
Heinz will keep its headquarters in Pittsburgh.
Kraft and Heinz are joining to form The Kraft Heinz Co., one of the world’s largest food companies with a stable of brands that, in addition to Kraft and Heinz, include Jell-O, Oscar Mayer, Velveeta and Ore-Ida.
