NEW YORK — Kraft Heinz, the maker of Heinz ketchup and Kraft Mac & Cheese, will split into two publicly traded companies by late 2026, unwinding a 2015 merger once touted as transformative but now seen as a cautionary tale.
The company will divide into Global Taste Elevation Co., focused on faster-growing categories like sauces, spreads and meals, and North American Grocery Co., centered on staples such as Oscar Mayer, Kraft Singles and Lunchables. CEO Carlos Abrams-Rivera will lead the grocery side, while a new chief will be named for the global unit.
The breakup reverses the Berkshire Hathaway-3 3G Capital megadeal that created the third-largest food company in North America but quickly faltered amid deep cost-cutting and stalled growth. A $15 billion write-down in 2019 underscored how cuts had eroded brand value, and Kraft Heinz stock has since fallen nearly 70%.
Shifts in consumer habits have added pressure, with demand for processed staples slipping as shoppers opt for fresher, healthier and private-label choices. Inflation and the rise of GLP-1 weight-loss drugs have further weakened sales, while regulators have pressed the company to eliminate artificial additives.
Kraft Heinz’s move follows a broader trend among food conglomerates to slim down. Kellogg split in 2023, while Mars and Ferrero have struck multibillion-dollar deals in snacks and cereals. Analysts say narrower portfolios help companies stay nimble and invest more effectively.
For consumers, little will change at the checkout line. But for investors, the breakup marks the end of a difficult chapter — and the possibility of a long-awaited turnaround.
