Kraft Heinz Announces Separation into Two Independent Public Companies
Kraft Heinz made a significant announcement on Tuesday, stating its plan to divide into two independent, publicly traded companies by the second half of 2026. This move effectively reverses the $46 billion merger that was orchestrated by Warren Buffett’s Berkshire Hathaway and 3G Capital in 2015.
The first of these companies, currently known as Global Taste Elevation Co., will concentrate on shelf-stable meals. The brand portfolio includes well-known names such as Heinz, Philadelphia cream cheese, and Kraft Mac & Cheese, generating $15.4 billion in annual sales.
On the other hand, the North American Grocery Co. will encompass brands like Oscar Mayer, Kraft Singles, and Lunchables, bringing in $10.4 billion in sales.
This decision comes in the wake of Kraft Heinz’s struggle with declining sales for seven consecutive quarters and shares that have plummeted 60% since the 2015 merger.
The current CEO, Carlos Abrams-Rivera, will take the helm of the grocery staples company, while the board embarks on a search for a CEO to lead the condiments business.
Source: CNN Business