Kraft Heinz said it is planning to split its business into two companies with the goal of reducing complexity and sharpening its focus. The move comes as Kraft Heinz has seen its stock value decline significantly in recent years.
The company said the separation will increase efficiency and maximize brand value. The split is expected to be finalized in the second half of 2026.
The Global Taste Elevation Co. will focus on sauces, spreads, seasonings, and shelf-stable meals. Its brands will include Heinz, Philadelphia, and Kraft Mac & Cheese.
The North American Grocery Co. will focus on meats, cheeses, and meal kits. Its brands will include Oscar Mayer, Kraft Singles, and Lunchables.
The Global Taste Elevation Co. will aim to expand its brands internationally, while the North American Grocery Co. will focus primarily on the North American market.
“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,” said Miguel Patricio, Executive Chair of the Board for Kraft Heinz. “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."Before Tuesday’s announcement, the company had said it would invest more in marketing within North American markets for some of its iconic products. Kraft Heinz also noted that inflation remains a concern, with costs rising 5–7% while prices have only increased about 1%.
This restructuring comes about a decade after Kraft and Heinz merged to form one of the largest food companies in the world.
