Kraft Heinz splits 10 years after merger

Kraft Heinz announced on Tuesday that it will separate 10 years after its merger. The decision was unanimously approved by the board of directors. The deal is expected to close in the second half of 2026, according to CNBC .

This plan will result in two independent companies, which will continue to be listed on the stock exchange, in a “tax-free” spin-off process, Kraft Heinz confirmed.

"The spinoff aims to maximize Kraft Heinz's capabilities and brands while reducing complexity and allowing the new companies to apply resources more effectively to their distinct strategic priorities. This focus will enable stronger performance while preserving the scale needed to compete and win in the current environment," the company explained.

Since the Kraft Heinz merger, the company has accumulated losses of 41% on the stock market.

The two companies that will result from the spin-off will be Global Taste Elevation Co. and North American Grocery Co.

Global Taste Elevation Co., Kraft Heinz points out, had sales of $15.4 billion in 2024 and adjusted EBITDA of $4 billion. This spinoff will retain brands such as Heinz, Philadelphia, and Kraft Mac & Cheese.

According to Kraft Heinz, North American Grocery Co. had sales of $10.4 billion in 2024 and adjusted EBITDA of $2.3 billion. After the spinoff, the company will retain brands such as Oscar Mayer, Kraft Singles, and Lunchables.

This split has already drawn criticism from one of the world's most famous investors, Warren Buffett, who, through Berkshire Hathaway, orchestrated the Heinz Kraft merger in 2015. The deal involved $46 billion at the time, with Berkshire Hathaway holding shares worth $9.5 billion. Berkshire Hathaway currently holds a 27.5% stake in Heinz Kraft, making it its largest stakeholder .

Warren Buffett, quoted by CNBC , said he was “disappointed” with the separation of the company.