Overview

• One company, Global Taste Elevation Co, will house Heinz ketchup, Philadelphia cream cheese, and Kraft Mac & Cheese with a focus on sauces, spreads, and seasonings.
• The other, North American Grocery Co, will include Oscar Mayer, Kraft Singles, Lunchables, Maxwell House, and other grocery staples for the U.S. and Canada.
• Kraft Heinz estimates roughly $300 million in dis-synergies from the breakup as it unwinds shared functions.
• Carlos Abrams-Rivera will lead the grocery-focused company, while the taste-elevation business is set to recruit a new chief executive.
• Shares fell about 7% on the announcement after Warren Buffett said he was disappointed and skeptical the split would fix problems, and Berkshire Hathaway recently wrote down its stake to $8.4 billion.