Kraft Heinz announces corporate breakup plan
The split will create two independent companies, each holding various food brands.
The Kraft Heinz Co. has announced its board of directors has unanimously approved a plan to separate into two independent, publicly traded companies. According to representatives, the separation is designed to maximize Kraft Heinz’s capabilities and brands while reducing complexity, in order to allow the newly formed companies to focus on their disparate strategic priorities and to enable stronger performance.
Official names of the two resulting companies will be announced at a later date—for now, they will be:
Global Taste Elevation Co.
This company will focus on shelf-stable foods and hold, according to the company, approximately $15.4 billion in 2024 net sales. The roster of this company will include three billion-dollar brands (Heinz, Philadelphia, and Kraft Mac & Cheese) with approximately 75% of net sales coming from sauces, spreads, and seasonings. Representatives add that approximately 20% of 2024 net sales are in Emerging Markets and approximately 20% are in Away From Home.
North American Grocery Co.
This half of the split will hold a portfolio of North America staples with approximately $10.4 billion in 2024 net sales. This company (to be led by Carlos Abrams-Rivera) will include three billion-dollar brands (Oscar Mayer, Kraft Singles, and Lunchables). According to representatives, approximately 75% of net sales come from brands that are No. 1 or No. 2 in their respective categories.
“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,” notes 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.”
View the company’s investor relations announcement for more information about the split and Kraft Heinz’s stated path moving forward.
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