Kraft Heinz has decided to stop its plan to split into two separate companies and will instead focus on rebuilding growth through a $600 million investment strategy, CEO Steve Cahillane announced in the company's fourth-quarter report.
The food giant had planned to break into two publicly traded businesses. Now, leaders say the better path forward is to strengthen the current company and fix ongoing challenges.
According to Yahoo, Cahillane said the issues facing Kraft Heinz are "fixable and within our control" and that his top goal is to return the business to profitable growth.
"As a result, we believe it is prudent to pause work related to the separation and we will no longer incur related dis-synergies this year," Cahillane said.
The company first revealed in September that its board approved a tax-free spinoff into two companies.
One unit, called Global Taste Elevation, would have included brands such as Heinz, Philadelphia and Kraft Mac & Cheese.
The other, North American Grocery, would have overseen products like Oscar Mayer, Kraft Singles and Lunchables. Official names and leadership for the grocery division had not yet been finalized.
Kraft Heinz announced this morning that it has paused plans to separate into two companies — and will now invest $600 million to turn around its U.S. business.
— Kevin Carpenter (@kejca) February 11, 2026
Berkshire Hathaway CEO Greg Abel welcomed the news. pic.twitter.com/0ehzZ8ySHW
Kraft Heinz Bets on $600M Growth Plan
Instead of dividing operations, Kraft Heinz will invest $600 million across marketing, sales, research and development, product improvements and select pricing efforts throughout 2026.
Cahillane said the company's strong balance sheet and $3.7 billion in free cash flow provide the flexibility to fund the plan while still producing extra cash, FoxBusiness reported.
"When I decided to join Kraft Heinz, I knew that this was an exciting opportunity to contemporize iconic brands, better serve consumers and customers, and build meaningful shareholder value," Cahillane said.
"My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan."
The decision comes after a difficult financial year. In 2025, full-year net sales fell 3.5% to $24.9 billion.
Organic sales dropped 3.4%, and product volume declined 4.1%. Adjusted operating income decreased 11.5%.
The company also reported an operating loss of $4.7 billion, largely due to non-cash impairment charges.
Cahillane said, "We are confident in the opportunity ahead and believe this investment will accelerate our return to profitable growth."
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