Kraft-Heinz splits in two to revive growth
Heinz, Philadelphia, Mac&Cheese brands spun off - The two entities Global Taste Elevation and North American Grocery will be listed separately
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There is the green light from Kraft Heinz for the planned demerger of its food division into a new, independent company, which will in turn be listed on Wall Street, with the aim of reviving its growth after years of weak sales.
The two entities resulting from the separation will be the Global Taste Elevation Co, comprising brands such as Heinz, Philadelphia and Kraft Mac & Cheese, and the North American Grocery Co, comprising brands such as Oscar Mayer, Kraft Singles and Lunchables.
The sauces division grossed about $15.4 billion in sales in 2024, while the food division generated about $10.4 billion.
"Kraft Heinz's brands are iconic and loved, but the complexity of our current structure makes it difficult to effectively allocate capital, prioritise initiatives and drive growth in our most promising areas," said Miguel Patricio, executive chairman of the Kraft Heinz board of directors.
The company expects the spin-off to be completed in the second half of 2026. Shares of the packaged food company rose about 1 per cent in pre-market trading in New York. The stock has lost about 21% over the past twelve months.
