Berkshire News Briefs - 7/1/15

Geico Nabs a Film Grand Prix at Cannes -- With a Pre-Roll Ad (Ad Age)

In a move that may spark a welcome sea change in the snooze-worthy arena of pre-roll advertising, the Cannes Lions International Festival of Creativity Film Jury awarded one of its top prizes to a mold-breaker in the category: a spot from Geico's "Unskippable" campaign that dares viewers to try and stop watching ads in which "nothing" happens. [...]

Geico topped the Non-Television category. Its pre-roll, "Family," created by The Martin Agency and directed by Park Pictures' Terri Timely, put a hilarious twist on the typically boring genre and features a family sitting at the dinner table with the Geico logo plastered boldly in the middle of the frame. Seconds into the ad, a voice-over announces, "You can't skip this Geico ad because it's already over," and mid-action, the family stops, except for the dog, who proceeds to devour every bit of food on the table. Although nothing much happens beyond that, the ad gets progressively funnier since it's blatantly obvious that the actors in the scene are simply holding their poses as the dog carries on.

Here's the extended version of GEICO's winning ad:

There's more of them in the series, if you play that one to the end and then watch the next suggested videos. GEICO is one of the few companies that I can waste 20 minutes on YouTube just watching their hilarious ads. This one is another current favorite of mine:

Warren Buffett's Berkshire Hathaway Expands in Australia, Opens New Zealand Office (Bloomberg)

Warren Buffett’s Berkshire Hathaway Inc. is adding an office in New Zealand and expanding its operations in Australia as part of a push to sell more commercial insurance globally.

The specialty-insurance unit is underwriting property and casualty coverage through a new office in Auckland, the company said Monday in a statement. Berkshire also announced it will sell policies to hospitals and medical practices in Australia, led by former American International Group Inc. executive Tony Bainbridge.

With Kraft Heinz merged, now comes the cutting (Chicago Tribune)

(Berkshire Hathaway is the majority shareholder of Heinz.)

Kraft Foods Group shareholders voted Wednesday to approve the company's sale to H.J. Heinz, a deal that brings together two storied packaged-food companies vying for attention as consumers look for healthier, fresher fare. [...]

More than 98 percent of votes cast were in favor of the transaction, representing over 69 percent of all outstanding Kraft shares, Corporate Secretary Kim Rucker told the small group. [...]

The acquisition may lead to heavy job losses as Kraft and Heinz — which have each already trimmed their ranks in recent years — try to cut $1.5 billion in annual costs. [...]

On Monday, the companies announced that many of Kraft's top executives, including Chief Financial Officer James Kehoe, will leave the food maker soon after the deal is completed.

Utilities commission approves TransAlta plant near Wabamun (Edmonton Journal)

TransAlta’s new gas-fired electricity plant near Wabamun got a green light from the Alberta Utilities Commission, which dismissed concerns about increased air pollution into the Edmonton area.

Sundance 7 — an 856-megawatt plant — is a joint venture with Warren Buffett’s Berkshire Hathaway Energy Company and could come on stream in 2018, according to the AUC ruling.[...]

TransAlta notes that gas-fired electricity is less polluting than coal-fired plants and the company intends to shut down two smaller coal units in 2019.

Berkshire Hathaway Inc. is Expected to Report $N/A for QN/A (The Markets Daily)

Remember kids, if you're going to use Mad-Libs computer programs to write your business news, be sure to hire a human editor.

Wall Street analysts expect Berkshire Hathaway Inc. to report earnings per share of $N/A for the current fiscal quarter. This number is based on the average estimate of the sell-side research firms that cover the stock. Berkshire Hathaway Inc. most recently reported earnings per share of $N/A on N/A for the quarter ended N/A.

This number was N/A away from what analysts had expected, a difference of N/A%.

Warren Buffett is now the world’s richest cartoon character (MarketWatch)

[...] Already known as one of the most famous investors in the world, the Oracle of Omaha has become celebrated of late among the grade-school set for his work with the Secret Millionaires Club, an animated program that teaches kids about finance. [...]

Since its relatively low-key inception in 2009, the series has grown to encompass a full slate of “webisodes” and half-hour TV programs (the show has aired on The HUB cable network, now the Discovery Family Channel; a new network partner is expected to be announced soon). Additionally, it has spawned a book, DVDs and “business in a box” kits that help youngsters start their own small-scale enterprises.