Search Here

Kraft Heinz, one of the world's largest food companies, announced Tuesday that it will split into two separate businesses.

This move comes ten years after the 2015 mega-merger that combined Kraft and Heinz into a single food giant.

The decision was approved unanimously by the company's board and will create two new publicly traded firms by the second half of 2026.

The goal is to help each business grow more effectively in a rapidly changing food market.

One company, temporarily called Global Taste Elevation Co., will focus on growing global brands like Heinz ketchup, Kraft Mac & Cheese, and Philadelphia cream cheese.

According to CNN, the other, North American Grocery Co., will manage U.S.-focused brands such as Oscar Mayer, Kraft Singles, and Lunchables.

The official names of the new companies will be announced later.

Kraft Heinz CEO Carlos Abrams-Rivera will stay on as CEO of the current company and later lead North American Grocery Co. after the split. The board is currently searching for a CEO for Global Taste Elevation Co.

"This move will unleash the power of our brands," Abrams-Rivera said. "It's only possible because of the commitment of our 36,000 employees who deliver quality and value every day."

Kraft Heinz Breakup Follows Shift Toward Fresher Foods

Executive Chair Miguel Patricio added, "Our brands are iconic, but the current company structure makes it hard to invest in the right places. This change will help each part of our business get the focus and resources it needs."

The split is seen as a response to consumer demand for healthier, fresher foods.

Traditional processed foods like cheese slices and boxed meals have become less popular, especially among younger and health-conscious buyers.

Kraft Heinz has already sold some of its older businesses, including Planters nuts and its natural cheese line, and promised to reinvest in growing brands like P3 protein snacks and Lunchables, CBS News reported.

The company's sales have been falling for several years, and its stock has dropped over 60% since the merger.

Food prices, shifting tastes, and competition from cheaper store brands have all made it harder for Kraft Heinz to compete.

Warren Buffett, whose company Berkshire Hathaway helped form Kraft Heinz, said he was "disappointed" about the split but won't try to stop it. Berkshire remains the biggest shareholder.