Kraft Heinz is getting ready for a major shake-up. According to a new report by The Wall Street Journal, the company is planning to spin off a big part of its grocery business—possibly worth up to $20 billion—into a new company.
This comes as Kraft Heinz faces slowing demand for some of its well-known products.
The planned split would move many classic Kraft items, such as boxed dinners, sliced cheese, and lunch kits, into a separate company.
Meanwhile, Heinz-branded sauces like ketchup and Grey Poupon mustard would stay with the main business, Reuters said.
The company hasn't officially confirmed the breakup but did refer to an earlier statement from May when it said it was reviewing strategic options to improve shareholder value.
At the time, Kraft Heinz said it wanted to explore ways to become more efficient and focus on growth.
Kraft Heinz is planning a breakup that could include spinning off much of its grocery business into a new $20 billion entity https://t.co/ncx9HAviK3
— The Wall Street Journal (@WSJ) July 11, 2025
Investors React as Kraft Heinz Mulls Major Split
People close to the matter say the final decision hasn't been made yet. Kraft Heinz is still working with its board and advisers to decide which brands would go into the new grocery company. An announcement could come in the next few weeks.
The stock market responded quickly. Kraft Heinz shares rose more than 2% on Friday afternoon after the news broke, showing that investors are hopeful the move could boost the company's value.
According to Invezz, Kraft Heinz was created in 2015 through a massive merger backed by Warren Buffett's Berkshire Hathaway and private equity firm 3G Capital.
But since then, it has faced challenges, especially as more shoppers move away from processed foods and toward fresh and healthier options.
To keep up, the company has already started shifting its focus. Just recently, Kraft Heinz sold its Italian baby food brand Plasmon and other nutrition products to a local food group called NewPrinces.
That sale, worth around $140 million, is expected to close in late 2025. It shows the company's new strategy to exit slower-growth categories and focus on products with more future potential.
Kraft Heinz will report its second-quarter 2025 earnings on July 30.
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