The Kraft-Heinz Company is splitting up again, the company says, roughly a decade after combining. In a September 2 press release, the company said its board had approved the plan to split unanimously, and the two independent, publicly traded companies resulting from the split will “maximize Kraft Heinz’s capabilities and brands while reducing complexity.”
The two constituent companies, tentatively named “Global Taste Elevation Co.” and “North American Grocery Co.,” will handle Kraft-Heinz’s sauces and seasonings brands and its grocery food brands, respectively.
Brands to be controlled by Global Taste Elevation Co. will include:
- Heinz
- Kraft Mac & Cheese
- Philadelphia
Brands to be controlled by North American Grocery Co. will include:
- Maxwell House
- Capri Sun
- Lunchables
- Ore-Ida
- Kraft Singles
- Oscar Mayer
Global Taste Elevation Co., which will control the Heinz and Philadelphia brands, will be reportedly positioned for “industry-leading growth,” with 20% of its 2024 net sales in “emerging markets.” North American Grocery Co., meanwhile, will take control of dominant brands like Oscar Mayer and Lunchables and will reportedly “generate reliable free cash flow” in existing markets.
The transaction is expected to close sometime in the latter half of 2026, pending filings with the Securities and Exchange Commission.
What people are saying
“Kraft Heinz’s brands are iconic and beloved, but 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. “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. I look forward to working closely with Carlos and the Kraft Heinz team in the months ahead to prepare the organization for the separation.”
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.”
“The Board’s unanimous decision to separate into two independent companies came after careful consideration and a comprehensive evaluation of our options. We strongly believe that increased focus will translate into better performance and value creation for shareholders,” said Jack Pope, Lead Director of the Kraft Heinz Board.
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