Rivals to focus on organic firms after Kraft deal

New York - The macaroni and ketchup merger of Kraft Foods and HJ Heinz may prove a boon to the far smaller natural and organic food companies that have seized market share as consumers shift away from processed foods, bankers and portfolio managers said.

Brazilian private equity firm 3G Capital Partners and Warren Buffett's Berkshire Hathaway announced a $46bn deal to consolidate the companies Wednesday, one that will create the No. 3 packaged food maker in North America after PepsiCo and Nestle USA..

Digesting that deal will likely sideline 3G, a major buyer of food companies, for the next year or two before it considers another large-scale acquisition, according to industry bankers.