Kraft Heinz Board Greenlights Breakup Into Two Public Companies “To Maximize Value”

Kraft Heinz will split into two publicly traded companies, separating its faster-growing condiments and meals brands from the slower grocery products unit. One of the new entities will be called “Global Taste Elevation Co.,” with the spinoff expected to close in the second half of 2026.

News of the split – effectively the unwinding of the Kraft Heinz mega-merger orchestrated by 3G Capital and Warren Buffett a decade ago – comes just three and a half months after CEO Carlos Abrams-Rivera told investors the company was evaluating potential “strategic transactions” to boost its stock price.

“The separation is designed to maximize Kraft Heinz’s capabilities and brands while reducing complexity, allowing both new companies to more effectively deploy resources toward their distinct strategic priorities,” Kraft Heinz wrote in a press release, adding, “This focus will enable stronger performance while preserving the scale to compete and win in today’s environment.” 

Here’s an overview of Kraft Heinz’s planned split into two public companies:

Global Taste Elevation Co.

• $15.4B in 2024 net sales; $4B in adjusted EBITDA.

• Core brands: Heinz, Philadelphia, Kraft Mac & Cheese.

• 75% of sales from sauces, spreads, and seasonings.

• 20% of sales from emerging markets; 20% from foodservice (“Away From Home”).

• Concentrated on driving industry-leading growth across categories and geographies.

North American Grocery Co.

• $10.4B in 2024 net sales; $2.3B in adjusted EBITDA.

• Core brands: Oscar Mayer, Kraft Singles, Lunchables.

• 75% of sales from #1 or #2 category brands.

• To be led by current Kraft Heinz CEO Carlos Abrams-Rivera.

• Strategy: deliver stable free cash flow via operational efficiency and brand expansion.

Here are more details about the transaction:

• Kraft Heinz’s board unanimously approved a tax-free spinoff, creating two independent, publicly traded companies.

• Overall mission: reduce complexity, sharpen strategic focus, and unlock long-term shareholder value.

• Current dividend level expected to be maintained; both firms will target investment-grade capital structures.

Kraft Heinz CEO Abrams-Rivera described the split as a “move that will unleash the power of our brands and unlock the potential of our business.” 

The move to unlock shareholder value comes as shares in New York have slumped to Covid lows, down around 37% since peaking in mid-2021. 

How this ultra-processed foods giant – much like PepsiCo – will survive in the era of Health and Human Services Secretary Robert F. Kennedy Jr. reshaping America’s toxic processed food supply chain remains to be seen.