Kraft Heinz has announced plans to break apart its decade-long merger, creating two separate public companies in an effort to reignite growth and streamline operations. The split is scheduled to be completed in the second half of 2026.
Why the Breakup?
Executives say the company has grown too complex since its 2015 merger, making it difficult to adapt to shifting consumer trends and rising costs. By separating, each business will gain sharper focus on its strengths, with the aim of improving efficiency and shareholder returns.
Two New Entities
- Global Taste Elevation Co.
This division will manage the company’s global portfolio of sauces, spreads, and seasonings. Well-known products such as Heinz ketchup, Philadelphia cream cheese, and Kraft Mac & Cheese will fall under its umbrella. In 2024, the segment generated over $15 billion in sales and about $4 billion in adjusted earnings. - North American Grocery Co.
Focused on grocery staples across the U.S. and Canada, this new company will oversee brands like Oscar Mayer, Kraft Singles, and Lunchables. Current CEO Carlos Abrams-Rivera will lead this division, which reported between $10 and $10.4 billion in 2024 sales.
Market Outlook
The move comes after years of financial struggles, including steep write-downs of brand value and declining stock performance. Analysts suggest that splitting up may give both companies a better chance of adapting to modern consumer demands, particularly as shoppers move toward fresher and healthier food options.
Key Takeaways
| Aspect | Details |
|---|---|
| Split Completion | Planned for the second half of 2026 |
| Global Focus | Heinz, Philadelphia, Kraft Mac & Cheese — ~$15B in annual sales |
| North American Focus | Oscar Mayer, Kraft Singles, Lunchables — ~$10–10.4B in annual sales |
| Leadership | Carlos Abrams-Rivera to head North American Grocery Co. |
| Objective | Simplify structure, sharpen focus, and deliver stronger shareholder returns |
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