The American food giant Kraft Heinz has announced a major structural change. After years of stagnation, the company has decided to split into two publicly traded businesses, each focusing on a different segment of the food market.

The first company will be called Global Taste Elevation Co and will include brands such as Heinz, Philadelphia, and Kraft Mac & Cheese. Its main domain will be sauces, ketchups, spreads, and seasonings, with a strong focus on international markets. In 2024 alone, this division generated revenues of approximately USD 15.4 billion.

The second firm, North American Grocery Co, will focus primarily on the North American market. Its portfolio includes brands such as Oscar Mayer (hot dogs), Lunchables (kids’ lunch kits), and Kraft Singles (cheese slices). In 2024, this division generated revenues of around USD 10.4 billion.

According to the company’s management, the split aims to simplify organizational structure, improve decision-making, and unlock the full potential of the individual brands. Chairman Miguel Patricio said that the current complexity was slowing growth and that the new standalone companies would be able to respond more flexibly to new opportunities.

The decision has not been met with universal approval. Investor Warren Buffett, whose Berkshire Hathaway holds nearly a third of Kraft Heinz shares, called the move disappointing. He admitted that the 2015 merger was not ideal, but he does not believe the split will solve all of the company’s problems. Following the announcement and Buffett’s comments, the company’s stock fell by as much as 4.8%.

The separation of Kraft Heinz is expected to be completed in the second half of 2026. While the North American division will be led by current CEO Carlos Abrams-Rivera, the leadership of the sauces company has yet to be determined.

The Kraft Heinz split joins other major restructurings in recent years, with global players such as Warner Bros. Discovery and Honeywell also announcing breakups of their businesses.

Source: Seznam Zprávy