The gigantic packaged food business, Kraft Heinz, announced that it would split into two separate companies.
The newly formed companies will be registered and marketed as two separate publicly traded businesses.
On September 2, 2025, the company unveiled its latest restructuring plans.
In an official statement, Kraft Heinz executive chair stated, “Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas.”
“By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value,” he added.
The new companies are yet to be named but they will separate the original company’s portfolio into two broader categories.
One will be quicker-growing businesses, including sauces, spreads and shelf-stable meals. Those are Heinz, Philadelphia and Kraft Mac & Cheese.
The other company will target the weak grocery products and food-away-from-home industries, such as Oscar Mayer, Kraft Singles and Lunchables brands.
Kraft Heinz anticipates that the new companies will begin to run independently in the second half of 2026.
The separation will unravel a huge but largely unsuccessful two-year-old merger planned by Berkshire Hathaway led by Warren Buffett and investment company 3G Capital.
The new companies immediately set to work cutting costs in order to increase profits and.
The decision follows a decline in Kraft Heinz’s sales, which fell 1.9 percent in the latest quarter, the seventh consecutive quarter of decline.