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4w ago

Kraft Heinz to Split Into Two Public Companies in 2026 Spinoff

The breakup seeks to simplify the portfolio to improve capital allocation after years of weak sales.

Kraft Heinz to split after a decade.
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FILE - At left, in a March 25, 2015, file photo, a Heinz ketchup sign is shown on the side of the Senator John Heinz History Center in Pittsburgh. At right, also in a March 25, 2015, file photo, the Kraft logo appears outside of their headquarters in Northfield, Ill. (AP Photo/File)
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Overview

  • Board unanimously approved a tax‑free spin‑off to create Global Taste Elevation Co. and North American Grocery Co., with completion targeted for the second half of 2026.
  • Global Taste Elevation will house Heinz, Philadelphia and Kraft Mac & Cheese, produced $15.4 billion in 2024 sales and $4 billion in core profit, and is recruiting a chief executive.
  • North American Grocery will include Oscar Mayer, Kraft Singles and Lunchables, reported $10.4 billion in 2024 sales and $2.3 billion in core profit, and will be led by CEO Carlos Abrams‑Rivera.
  • Kraft Heinz says the separation will cut structural complexity and sharpen capital allocation, with both companies expected to maintain investment‑grade profiles and continue aggregate dividends.
  • A board Separation Committee chaired by John Cahill and advisors Centerview Partners, Paul, Weiss and Skadden will steer the process, with headquarters remaining in Chicago and Pittsburgh.