Kraft Heinz reportedly splits into two businesses

Kraft Heinz is reportedly splitting into two separate businesses, as part of its latest restructuring plans.

The development was stated by The Wall Street Journal, which cited sources familiar with the matter but cautioned that both the plans and their timing could still change.

While the new units have not been named, multiple reports such as CNN said one will focus on fast-growing businesses such as sauces and spreads. The other unit will work on the struggling grocery items away from home businesses including the Oscar Mayer, Kraft Singles and Lunchables brands.

Kraft Heinz executive chair Miguel Patricio told CNN in a statement that Kraft Heinz’s brands are iconic and beloved, but the complexity of its current structure makes it challenging to allocate capital effectively, prioritise initiatives and drive scale in its operations. The two new firms are said to begin operations in the second half of 2026, said the report.

The move can help the company 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, said the statement.

MARKETING-INTERACTIVE has reached out to Kraft Heinz for a statement.

Back in July, the company was reportedly considering spinning off part of its grocery business - potentially valued at around US$20 billion - while the remaining company would focus on faster-growing categories such as sauces, condiments, and snacks.

Don't miss: Kraft Heinz forks out US$62m for accounting misconduct and misleading contracts

The possible break-up follows comments from CEO Carlos Abrams-Rivera in May, when he signalled a shift towards bolder restructuring. “Consistent with this goal, over the past several months we have been evaluating potential strategic transactions to unlock shareholder value. As we look to the future, we will continue to inspire and delight consumers with our iconic brands, fulfilling our mission,” he said at the time.

The company, which owns brands such as Heinz ketchup, Oscar Mayer meats and Maxwell House coffee, has been under pressure following weak financial performance. In 2024, sales dropped 3% to US$25.85 billion, while operating profit slumped 63.2% to US$1.7 billion due to US$3.7 billion in impairment charges. Net income fell to US$2.74 billion from US$2.86 billion the year before.

More recently, Kraft Heinz reported a 3.3% decline in organic sales for the first half of fiscal 2025, with volume/mix down 4.2%. In its core North American market, revenues fell 4.8%, dragged by a 5.2 percentage-point slide in volume/mix.

The food group, which was created in 2015 through the merger of Kraft Foods Group and H.J. Heinz orchestrated by Berkshire Hathaway and 3G Capital, has already been in divestment mode. In July, Kraft Heinz agreed to sell a bundle of assets in Italy to local company NewPrinces.

While Berkshire Hathaway remains a shareholder, 3G Capital fully exited in 2023, leaving the ketchup-to-mac-and-cheese maker under greater scrutiny from the market as it attempts to restore growth and investor confidence.

Accelerate your brand’s growth with AI-first strategies, emerging tech and data-driven experiences. Join 500+ marketing leaders at Digital Marketing Asia 2025 Singapore on 24–25 September to uncover transformative trends, real-world wins and powerful ideas for 2025 and beyond.

Related articles:
Kraft Heinz Indonesia builds brand awareness by tapping into young business owners
Kraft Heinz spotlights key ingredient in ABC Bawang Pedas sambal ad
Kraft Heinz boosts marketing spend by 30%, consolidates 55 categories into 6