Summary
Kraft Heinz plans to divide into two separate companies, one focusing on groceries and the other on sauces and spreads, to address financial challenges. The breakup is expected to happen in the second half of 2026. This move follows a trend among large consumer brands shifting away from the conglomerate model due to slow sales and low stock values.
Key Facts
- Kraft Heinz will split into two companies, targeting groceries and sauces/spreads, respectively.
- The split is expected to be completed in the latter half of 2026.
- The companies will be temporarily named Global Taste Elevation Co and North American Grocery Co.
- Wall Street had anticipated this breakup as a strategy to increase shareholder value.
- Share prices of Kraft Heinz have dropped about 60% since their 2015 merger.
- The company has attempted to focus on high-growth brands, selling its Planters nut and natural cheese businesses in 2021.
- The split is estimated to cost up to $300 million, though Kraft Heinz plans to minimize these costs.
- The current Kraft Heinz CEO, Carlos Abrams-Rivera, will lead the grocery unit.
