Kraft Heinz announced plans to split into two separate companies, ending a decade-long merger that once created one of the largest food manufacturers in the world. The company said Tuesday that one entity, currently named Global Taste Elevation Co., will house brands such as Heinz, Philadelphia cream cheese, and Kraft Mac & Cheese. The other, North American Grocery Co., will include slower-selling products like Maxwell House, Oscar Mayer, Kraft Singles, and Lunchables. Official names for both companies are expected at a later date.
The move follows a strategic review initiated in May 2025 and is expected to be completed in the second half of 2026. When Kraft Heinz was formed in 2015 through the merger of Kraft Foods and H.J. Heinz Co., the aim was to leverage scale and efficiency across its portfolio. However, changing consumer preferences toward healthier foods have challenged those goals.
Over recent years, Kraft Heinz has tried to adjust by selling off parts of its business and focusing on faster-growing brands. In 2021, it sold its Planters nut business and natural cheese division to reinvest in higher-growth products like P3 protein snacks. Despite these efforts, the company’s net revenue has declined each year since a temporary sales boost during the pandemic in 2020.
In April 2025, Kraft Heinz lowered its full-year sales and earnings forecasts due to weaker consumer spending in the U.S. and economic impacts related to tariffs imposed during Donald Trump’s presidency.
“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,” Executive Chairman Miguel Patricio said.
The origins of the merger trace back to Warren Buffett teaming up with Brazilian investment firm 3G Capital in 2013 to acquire H.J. Heinz Co. for $23 billion—a record at that time for the food industry. Both firms were known for strict cost controls after forming Restaurant Brands International (which owns Burger King) and Anheuser-Busch InBev.
Kraft sought partnership opportunities after splitting from Mondelez International in 2011. The subsequent merger with Heinz resulted in annual revenues reaching $28 billion at its peak.
Russell Zwanka, an associate professor of food marketing at Western Michigan University, noted that even when Kraft merged with Heinz many consumers were moving away from processed foods—products central to Kraft’s lineup such as Velveeta cheese and Kool-Aid—and that removing artificial flavors increased costs further.
“The customer has become much more diligent in what they’re buying, and so it’s making it more difficult to allocate your resources properly,” Zwanka said.
Kraft Heinz also faced competition from less expensive store brands; for example, Walmart sells its own ketchup brand for significantly less than Heinz.
In 2019, Kraft Heinz reduced the value of some key brands by $15.4 billion amid criticism over leadership’s emphasis on cost-cutting rather than innovation. Berkshire Hathaway remains Kraft Heinz’s largest shareholder with a 27% stake but saw stock values drop about 70% since the merger.
Warren Buffett expressed disappointment over both the decision to split—expected to cost $300 million—and shareholders not being given a vote: “It certainly didn’t turn out to be a brilliant idea to put them together, but I don’t think taking them apart will fix it,” he told CNBC.
Zwanka suggested consumers may not notice immediate changes but predicted some legacy brands could eventually be acquired by other companies: “These brands have survived over 100 years and they will continue to survive,” he said.
He pointed out that Kellogg Co.’s recent split provided an example; after dividing into two entities last year—with snack company Kellanova later acquired by Mars—Italian confectioner Ferrero moved this July to purchase WK Kellogg’s cereal business.
Other major food producers are also restructuring: Keurig Dr Pepper recently announced plans for a similar split after acquiring Peet’s Coffee; Keurig merged with Dr Pepper Snapple Group in 2018 (https://www.reuters.com/business/retail-consumer/keurig-dr-pepper-buy-jde-peets-parent-plan-split-company-2025-08-21/).
Zwanka voiced concern for Kraft Heinz’s roughly 36,000 employees facing uncertainty during this transition period: “The brands will survive. You just hope the people will move with the brands,” he said.
Carlos Abrams-Rivera will remain CEO through this process before leading North American Grocery Co.; an executive search is underway for Global Taste Elevation Co.’s future chief executive officer. Headquarters will stay located in Chicago and Pittsburgh as before.
Shares of Kraft Heinz fell nearly seven percent on Tuesday following news of the planned separation.
