The spin-off comes 10 years after the two companies merged in an effort to promote growth.
Released on September 2, 2025
Kraft Heinz is split into two different companies focusing on groceries, the other focusing on sauces and spreads.
The food manufacturing giant announced its disbandment on Tuesday after failing to achieve the expected growth when it was formed 10 years ago.
The spinoff, which is scheduled to close in late 2026, is the latest in a series of reorganizations of global consumer brands that once embraced the conglomerate model, but once embraced the conglomerate model, which has once embraced the conglomerate model, but has rethinked its business structure amid declining sales, valuations of declines and tariffs.
One of the companies currently known as Global Taste Elevation Co includes brands such as Heinz, Philadelphia Cream Cheese, and Kraft Mac & Cheese.
Another now known as a North American grocery store includes legacy brands such as Maxwell House, Oscar Mayer, Craft Singles and Lankanable. The official names of both companies have not been released yet.
Wall Street was anticipating a breakup after the company said it was looking for opportunities to increase shareholder value in May. As of 11am (15:00 GMT) in New York, shares had fallen by more than 5%.
The 2015 merger in which Warren Buffett’s Berkshire Hathaway, along with Brazilian private equity firm 3G Capital, was launched by engineers to help engineers, establishing a $45 billion company with the goal of reducing costs and driving growth for iconic brands such as Heinz Beans, Geloo and Philadelphia Cream Cheese. Instead, stocks at the time lost about 60% of their value at the time, especially as consumers curbed spending, especially in the wake of the Covid-19 pandemic.
In 2021, Kraft Heinz sold both Planters Nut Business and Natural Cheese Business and vowed to reinvest the money in high-growth brands such as P3 protein snacks and lunch. However, the company continued to struggle, with Craftheinz’s net sales falling 3% in 2024.
“For investors, this move could unlock value in the short term, but the risk of execution is clear. Unless both entities invest in innovation and protect against civil intrusions, division could not be achieved more than a temporary financial lift.
The grocery squad is being led by Carlos Abrams-Rivera, the current top boss of Kraft Heinz, while looking for potential CEO candidates for the Sauces unit.
The company expects to cost up to $300 million for the split, but expects to cut much of that cost quickly.
Last week, US soft drink giant Dr. Keurig Pepper announced the $18 billion acquisition of JDE Peet.
