Kraft-Heinz split stumbles on sales slump

The Kraft-Heinz Company paused its plan to split into two independent companies following a fourth-quarter financial earnings report showed falling sales and profit. After initially announcing its intention to split into two companies called Global Taste Elevation Co. and North American Grocery Co. in September 2025, the company backed away from the plan in its February 11 earnings report. In a statement, Kraft-Heinz CEO Steve Cahillane said that his first priority was returning the company to growth territory.

It’s not clear when or if the company intends to revisit its decision to split into two companies. In its earnings report, Kraft-Heinz co. announced that overall sales fell 3.5% to $24.9 billion in the 2025 financial year, leading to an operating loss of $4.7 billion.

The change in plans also follows a change in leadership. In December 2025, Kraft-Heinz’ board of directors established that Steve Cahillane, previously CEO of Kellogg Company, would take over the role of CEO, replacing Carlos Abrams-Rivera at the top. At the time, the company said Cahillane would become CEO of Global Taste Elevation Co. once the split came into effect, and that it was still looking for a CEO for North American Grocery Co.

What people are saying

“When I decided to join Kraft Heinz, I knew that this was an exciting opportunity to contemporize iconic brands, better serve consumers and customers, and build meaningful shareholder value.” said Steve Cahillane, CEO of Kraft Heinz. “Since joining the company, I have seen that the opportunity is larger than expected and that many of our challenges are fixable and within our control. My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan. As a result, we believe it is prudent to pause work related to the separation and we will no longer incur related dis-synergies this year.”

“Kraft Heinz is already seeing the benefit of Steve’s deep industry experience and proven track record of building brands and leading large-scale transformations,” said John T. Cahill, Chair of Kraft Heinz’s Board. “From day one, he has brought a fresh, consumer-first perspective that we believe creates a clear glidepath back to profitable growth. We are confident that our decision to pause the work related to the separation and fully focusing our resources in service of growth is the right move at this time. We remain excited about the road ahead for Kraft Heinz.”