Kraft Heinz Announces Decade-End Split into Two Publicly Traded Companies
Kraft Heinz made a significant announcement on Tuesday, revealing plans to split into two separate publicly traded companies. This move reverses the colossal $46 billion merger that was orchestrated by Warren Buffett and 3G Capital a decade ago.
The separation will result in the creation of two focused entities. The first, named “Global Taste Elevation”, will encompass faster-growing brands such as Heinz ketchup, Philadelphia cream cheese, and Kraft Mac & Cheese. This entity is projected to generate $15.4 billion in annual sales. The second entity, “North American Grocery”, will house slower-growing brands including Oscar Mayer, Kraft Singles, and Lunchables, with an expected $10.4 billion in revenue.
Current CEO Carlos Abrams-Rivera is set to lead the grocery-focused company. Meanwhile, the board will be conducting a search for a CEO to head the sauces and spreads division. The transaction is anticipated to close in the second half of 2026 via a tax-free spinoff.
The decision to split comes in the wake of years of declining performance. Kraft Heinz shares have fallen roughly 68% since the 2015 merger. The company has grappled with shifting consumer preferences towards healthier options and increased competition from generic brands. This strategic move follows similar successful breakups in the food industry, including Kellogg’s split in 2023.
Source: CNBC