The Kraft Heinz Company announced today its plan to divide into two focused, scaled entities to “accelerate profitable growth and unlock shareholder value.”
According to a statement by the company, “The separation is designed to maximize Kraft Heinz’s capabilities and brands while reducing complexity, allowing both new companies to more effectively deploy resources toward their distinct strategic priorities. This focus will enable stronger performance while preserving the scale to compete and win in today’s environment.”
As part of the split, one of the companies will target faster-growing segments like sauces, spreads, and shelf-stable meals, including Heinz, Philadelphia, and Kraft Mac & Cheese. The other will concentrate on struggling grocery products and away-from-home food businesses, such as Oscar Mayer, Kraft Singles, and Lunchables.
Miguel Patricio, Executive Chair of the Board for Kraft Heinz told investors, “The complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas. By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value.”
Carlos Abrams-Rivera, Kraft Heinz CEO, said, “This move will unleash the power of our brands and unlock the potential of our business. This next step in our transformation is only possible because of the commitment of our 36,000 talented employees who deliver quality and value for consumers every day. We will continue to operate as ‘one Kraft Heinz’ throughout the separation process.”
Kraft Heinz anticipates that the new companies will begin operating independently in the second half of 2026.
Shares of the company edged up slightly in pre-market trading after the announcement.
By CEO NA Editorial Staff
