Kraft Heinz, is dividing into two separate publicly traded businesses, the company announced, the latest mega food business to unwind its strategy to offer everything for everyone. Kraft Heinz is the gigantic packaged foods business. Kraft Heinz expects the new companies will start operating separately in the second half of 2026.
One of the two companies will focus on faster-growing businesses, such as sauces, spreads and shelf-stable meals. Those brands include Heinz, Philadelphia and Kraft Mac & Cheese. The other company will focus on the struggling grocery items and food away from home businesses, including the Oscar Mayer, Kraft Singles and Lunchables brands.
Kraft-Heinz, like all big food companies, is grappling with inflation-weary buyers cutting back spending or switching to generic labels and the rise of GLP-1 drugs hurting demand for snack food.
There is also pressure from U.S. Department of Health and Human Services Secretary Robert F. Kennedy Jr. to remove synthetic flavors and other additives. Now, with the breakup, analysts say Kraft Heinz will be trying to replicate the success of another packaged food giant – Kellogg.
Executive Statement
According to Miguel Patricio, the Kraft Heinz executive chair, 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. By separating into two companies, they 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.