Kraft Heinz to Split into Two Companies Amid Strategic Restructuring

Kraft Heinz announced on Tuesday that it will split into two independent, publicly traded companies, marking a major restructuring aimed at boosting growth and shareholder value.

The move comes a decade after the high-profile 2015 merger between Kraft and Heinz, orchestrated by Berkshire Hathaway and 3G Capital.

The split will create:

1. Global Taste Elevation Co.
This company will focus on Kraft Heinz’s international, shelf-stable brands, including Heinz ketchup, Philadelphia cream cheese, and Kraft Mac & Cheese. These brands collectively generated $15.4 billion in net sales in 2024.

2. North American Grocery Co.
This entity will manage regional favorites such as Oscar Mayer, Kraft Singles, and Lunchables, with $10.4 billion in net sales last year.

Current CEO Carlos Abrams-Rivera will lead the North American company, while a CEO search is underway for the global segment.

The separation is expected to be finalized in the second half of 2026. Both companies will retain their headquarters in Chicago and Pittsburgh.

The restructuring will be executed as a tax-free spinoff, maintaining current dividend levels and aiming to preserve investment-grade ratings for both entities.

The strategic move addresses slowing demand for traditional packaged foods and the need for more focused capital allocation.

By splitting into two specialized companies, Kraft Heinz aims to streamline operations, better serve customers, and accelerate performance.

Kraft Heinz shares (KHC) have fallen 21% over the past year, reflecting broader industry challenges.

Analysts say the split may help unlock shareholder value by allowing each company to pursue its growth strategy more aggressively.

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