Particle.news
Download on the App Store
23 ARTICLES
·
2w ago

Kraft Heinz to Split Into Two Public Companies by Late 2026

Executives say a simpler structure will focus investment to address years of underperformance.

Image
Heinz ketchup packets arranged at a cafe in New York, US, on Monday, July 14, 2025. Kraft Heinz Co. is preparing to break itself up and spin off a large part of its business into a new entity, people familiar with the matter said Friday.
Image
Heinz Ketchup products sit on a supermarket shelf in New York City, U.S., August 22, 2025, REUTERS/Jeenah Moon/File Photo

Overview

  • The separation will create Global Taste Elevation Co. (Heinz, Philadelphia, Kraft Mac & Cheese) and North American Grocery Co. (Oscar Mayer, Kraft Singles, Lunchables).
  • The company targets completion in the second half of 2026 via a tax-free spin-off and estimates up to $300 million in separation costs.
  • CEO Carlos Abrams-Rivera will lead the North American Grocery business, while a search is underway for a chief executive to run the sauces and spreads unit.
  • Shares fell roughly 5%–7% after the announcement as Berkshire Hathaway’s Warren Buffett said he was disappointed and questioned whether a breakup would solve the company’s problems.
  • The sauces-and-spreads business generated about $15 billion in 2024 sales and the grocery unit more than $10 billion, with headquarters staying in Chicago and Pittsburgh.