Kraft Heinz to Split Business
The Kraft Heinz Co. is restructuring, splitting into two separate companies.
The two businesses — Global Taste Elevation Co. and North American Grocery Co. (formal names to be announced at a later date) — will focus on shelf-stable meals and North American staples, respectively.
The company stated that the split will enable Kraft Heinz to maximize its capabilities and brands, reducing complexity and optimizing resource allocation toward distinct strategic priorities.
“The complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” said Miguel Patricio, executive chair of the board for Kraft Heinz, in a statement.
“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.”
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North American Grocery: Brands within this category — including Oscar Mayer, Kraft Singles and Lunchables — were worth approximately $10.4 billion in 2024 in net sales. Approximately 75% of net sales come from brands that are No. 1 and No. 2 in their respective categories at the company. This business will be led by current Kraft Heinz CEO Carlos Abrams-Rivera once the deal finalizes.
Global Taste Elevation: Brands within this category — including Heinz, Philadelphia and Kraft Mac & Cheese — were worth approximately $15.4 billion in 2024 in net sales. Approximately seventy-percent of net sales come from sauces, spreads and seasonings. The board is working with a global executive search firm to identify CEO candidates for this segment, which will remain in its current headquarter locations.
Abrams-Rivera said in a statement that the businesses will operate as "one Kraft Heinz" throughout the separation process.
Kraft Heinz's Business Review
The business separation is the result of a formal strategic review launched by the Kraft Heinz board in May to identify potential strategic transactions that could drive long-term growth. This process looked to identify a solution that would:
- Deliver long-term sustainable value creation.
- Preserve financial discipline.
- Maintain relevant scale while minimizing complexity and dis-synergies.
- Maximize the value of the company’s brand portfolio.
- Maintain attractive capital returns while preserving balance sheet flexibility.
[Also: Keurig Dr Pepper to split beverage, coffee businesses]
It builds on the company's strategy to accelerate, balance and protect — core actions identified during the CAGNY conference last year, according to a video announcement from Abrams-Rivera.
Now, a separation committee, formed by the board, will oversee the transaction, which looks to close in the second half of 2026. Patricio will be working closely with Abrams-Rivera to prepare the organization for the separation.
The company expects to drive up to $300 million of "dis-synergies" through this business strategy.
