3G to use its cost-cutting playbook

New York - When Kraft Foods Group merges with HJ Heinz, they will share a name, a central place in the American kitchen and two headquarters near Chicago and Pittsburgh.

But that dual office structure may soon change, according to some industry watchers. If history is any guide, their new owners will wrest an expected $1.5bn in annual cost savings by 2017 by removing duplicate operations, slashing perks such as the use of private jets, while scrutinizing even the most mundane expenses.

"There is going to be a lot of headcount reduction," said Bob Goldin, executive vice president of food consultancy Technomic. "You will see some portfolio pruning. They aren't going to have two headquarters for long."