The consumer packaged goods industry is ripe for more mega-mergers like this week's H.J. Heinz and Kraft Foods deal, according to the chief financial officer of a leading food manufacturer.
"It's a brilliant deal," Cem Karakas, the CFO of Yildiz told CNBC Thursday. "(It) was expected to happen at one point in time anyway. And I think that it will also pave the way for further transactions within the U.S. food space because there needs to be further rationalization in the U.S. CPG (consumer packaged goods) industry."
He added that the main aspect of the deal would be from Heinz's international channels which would help to Kraft "out of the U.S." and increase their global sales.
Yildiz began in Istanbul, Turkey but has grown into a globally recognized manufacturer. It has a global base of factories, employs 41.000 people and has done majors tie-ups with the likes of Kellogg's. In 2014, it acquired U.K.-based United Biscuits, which produces some of the biggest and well-known names in European confectionery such U.K. teatime the Jaffa Cake.
Karakas said that Yildiz would be increasing its presence in the U.S. and Canada in the years to come and expected a rise of 15 percent globally for its headcount this year.
"U.S. and Canada is a core market for us and a core growth area," he said. "Even in (our) outlook of 2015, we are going to experience very, very strong growth. The first three months was very good as well."
Erin Lash, a senior equity analyst of consumer packaged goods at Morningstar, believes that while there may not be any more mega-mergers on the table, there will likely be "consolidation" in the food sector with firms deciding to concentrate on their own nice.
"Heinz is actually fairly diversified from a global perspective," she told CNBC Thursday.
"They generate 60 percent of their sales outside of North America including 25 percent in emerging and developing markets. So I think one of the intentions will be to utilize Heinz's global distribution platform to extend the sales and reach of Kraft's domestically based products."
Kraft Foods Group stock surged Wednesday after the company announced a merger deal with H.J. Heinz financed in part by Warren Buffett.
Buffett told CNBC that his Berkshire Hathaway company will have $9.5 billion worth of common stock in the newly merged H.J. Heinz-Kraft Foods company. It will be headed by Heinz Chief Executive Bernardo Hees.
