Kraft Heinz announced its intention to separate into two independent, publicly traded companies. One company, currently named North American Grocery Co., will focus on North American grocery brands. This includes well-known names like Oscar Mayer, Kraft Singles, and Lunchables.
The second company, temporarily called Global Taste Elevation Co., will concentrate on global brands and shelf-stable meals. Its portfolio will feature iconic products such as Heinz ketchup, Philadelphia cream cheese, and Kraft Mac & Cheese. Final company names will be announced at a later date.
The decision follows a strategic review initiated earlier this year. Kraft Heinz executives acknowledged that the current corporate structure hindered effective capital allocation and hampered progress in high-growth sectors. The complexity of managing such a large, diverse portfolio proved challenging.
Miguel Patricio, executive chair, explained that the split would allow for better focus and resource allocation. He stated that the iconic Kraft Heinz brands are beloved by consumers but that the current structure presented significant organizational hurdles.
The merger of Kraft and Heinz in 2015, orchestrated by Warren Buffett and 3G Capital, created one of the world’s largest food companies. While initially aiming for economies of scale, the combined entity struggled with shifting consumer preferences toward healthier options and competition from cheaper store brands.
The company faced several challenges including declining net revenue since 2020 and difficulties competing with lower-priced alternatives. Kraft Heinz also previously wrote down the value of several key brands, reflecting operational and supply chain issues.
Carlos Abrams-Rivera will remain CEO of Kraft Heinz and will transition to CEO of North American Grocery Co. A search is underway for a CEO to lead Global Taste Elevation Co. The company expects the split to be finalized in the second half of 2026, and it intends to maintain its headquarters in both Chicago and Pittsburgh.
The split is intended to streamline operations and allow each company to better target specific market segments. The company believes that this move will ultimately lead to enhanced profitability and growth for both entities. The announcement was met with a slight increase in Kraft Heinz‘s share price.
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