Kraft Heinz, one of the world’s most recognizable food giants, is making waves with a bold decision to split into two separate companies—nearly a decade after its blockbuster 2015 merger. Instead of a smooth continuation of its once-celebrated union, the company is charting a different path, leaving many to wonder what went wrong. Read on to discover the real reasons behind the split and what it means for the future of this iconic brand.
Kraft Heinz unveils two new companies in major shake-up
Kraft Heinz revealed on Tuesday that it will separate into two distinct companies. The first, Global Taste Elevation Co., will focus on shelf-stable favorites such as Heinz condiments, Philadelphia cream cheese, and Kraft Mac & Cheese. The second, North American Grocery Co., will take charge of staples like Oscar Mayer, Kraft Singles, and Lunchables, marking a major shift in how the company organizes its well-loved products.
What sparked Kraft Heinz’s breakup
Kraft Heinz’s decision to divide into two companies stems in part from a strategic review conducted in May, as the company seeks to adapt to shifting consumer preferences increasingly favoring healthier options. The company’s board “unanimously approved a plan to separate the company into two independent, publicly traded companies through a tax-free spin-off,” per a statement obtained by CBS News. The move is viewed as an effort to streamline investments and focus on growth areas that could strengthen the company’s market position.
Both strategic shifts and evolving consumer trends have contributed to this major restructuring. Executive Chair Miguel Patricio noted that the current organizational model has made it difficult to allocate capital efficiently and scale the company’s most promising segments. “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,” Patricio said in a statement reported by NBC Chicago.
Kraft Heinz reveals key leadership plans post-split
Carlos Abrams-Rivera, CEO of Kraft Heinz, will remain in his current role and is expected to transition as CEO of North American Grocery Co. once the separation is finalized. Meanwhile, the company is actively searching for a suitable leader to head Global Taste Elevation Co.
“This move will unleash the power of our brands and unlock the potential of our business,” Abrams-Rivera told CBS News, reflecting the confidence behind the decision to divide the company. Kraft Heinz also confirmed that its headquarters in Chicago and Pittsburgh will stay in place, with the transaction expected to be completed in the second half of 2026.
Is Kraft Heinz’s split a smart move?
Whether Kraft Heinz’s split will ultimately be successful remains to be seen, but early signs suggest cautious optimism. Shares of the company rose modestly following the announcement, reflecting investor hope that dividing into two focused entities could help revitalize the business. After years of declining revenues and lackluster performance, this bold move represents a calculated effort to unlock growth, streamline operations, and position the iconic brands for a stronger future.
Sources: CBS News, NBC Chicago, Kraft Heinz