here's kraft ceo john cahill who just stepped off an investor conference call about the deal.courage you not to underestimate the opportunity we have, what the fabulous brands in these territories where we can just leverage the heck out of heinz's infrastructure. it is a magical combination. and so i think -- i think this company has a tremendous future. i think scale works when you operate it well. that's my view. >> david that was in response to a question he got from an analyst as to, yes, we get the scale argument but it didn't work with mondelez. why will it work with heinz? as you remember the origin of kraft as independent company came two year ago when it split off from answer international of heinz. >> it's a fair question. two companies, mondelez and kraft were together. now looking for international exposure. when heinz went private people say it was thinking about doing a deal with kraft as opposed to going private at that time it's no stranger the idea of putting kraft and heinz together. they will make an argument i think, their product portfolio meshes better th

john cahill, current ceo of kraft who will be an executive at the combined company indirectly said it is because, whether you are good at doing scale. the implication was 3g is better at scalet than the management at kraft-mondelez. olivia: he's a recent arrival at kraft he has a background in private equity. that increased speculation that kraft would be on the auction block. matt: warren buffett was critical of kraft at the time. olivia: is campbell's soup next? ken: i cannot answer that. these companies that produce shelf-staple foods need to watch the bottom line. there are a lot of people that think they can do better. matt: thanks so much, ken shea and julie hyman. covering this -- olivia: do your feed your children velveeta? julie: no. matt: why would you even ask? this is organic. matt: i think most of american families, i would guess that the lion's share has a box of kraft macaroni cheese on the shelf. if you grew up in new york on park avenue, you eat annie's or your blue soup kitchen. julie: tell him what kind of macaroni and cheese you have. matt: a terrible start to 2015

it replaced with john cahill in december and they thought he would be open to deal making. shares up 16% after hours and today in europe they're up about 15%. shares of other u.s. food companies rose in after hours today. mondeles is up while kellogg and campbell soup are lower. >> we'll take a quick break but let's remind you of the headlines before we do. recovery efforts resume at the germanwings crash site with investigation underway. 3g capital is in talks to buy kraft food for $40 billion and amazon slams the faa for a lack of impatiens on commercial drone regulation. we'll be back in a couple of minutes. s aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. >>> this report tracks demand for big ticket items such as planes or heavy equipment. orders are forecasted to rise for a second straight month. charles evans is speaking in london in the next hour and there's earnings today from the

john cahill who is kraft's currency will become vice chairman of the board. this company is going to be ginormous. the fifth biggest food and beverage company in the world. number three in the americas. one of the strategic goals is to get kraft's brands selling internationally. it's primarily in north america. heinz, 51% of its sales are abroad. it has the infrastructure there and the global reach to help out kraft. another big goal. cutting costs. management says there are $1.5 billion of synergies here. opportunities for overlap on cost for manufacturing, to marketing. the bigger question though what is the long-term growth picture. consumers just are not into packaged foods like they used to be. they like organic. they like natural. they like fresh. that's where the growth is in this industry. it's why kraft saelz have been pretty much flat and the company has been losing market share. warren buffett, for one, told ""squawk box"" there are seven billion people in the world so, there will be tastes and buyers for kraft around the world. one of the reasons