Kraft Heinz to Split into Two Companies to Drive Growth

Kraft Heinz said on Tuesday it will split into two publicly traded companies, one focusing on its sauces business and the other on grocery products, as the U.S. packaged goods maker aims to revive growth after years of weak sales.

The first company, called "Global Taste Elevation Co," will house brands like Heinz, Philadelphia, and Kraft Mac & Cheese, while the other, called "North American Grocery Co," will consist of the Oscar Mayer, Kraft Singles, and Lunchables brands.

The sauces unit brought in about $15.4 billion in sales in 2024, while the grocery business generated about $10.4 billion in sales.

"Kraft Heinz brands are iconic and beloved, but the complexity of our current structure makes it difficult to effectively allocate capital, prioritize initiatives and increase scale in our most promising areas," said Miguel Patricio, Executive Chairman of Kraft Heinz.

The company expects the separation to be completed in the second half of 2026.

Kraft Heinz said in May that it was looking for merger and acquisition opportunities to increase shareholder value. The company, like other packaged food companies, has been struggling as consumers seek healthier and more affordable condiments and snacks.

The company's shares rose about 1% in premarket trading. The stock has lost about 21% of its value in the last twelve months.