Kraft Heinz To Split Into Two Independent Public Companies

Kraft Heinz (KHC) stated on Tuesday that its board has approved a plan to separate the company into two independent, publicly traded firms through a tax-free spin-off.

The company said that the separation is designed to maximize Kraft Heinz's capabilities and brands while reducing complexity, allowing both new companies to deploy resources toward their distinct strategic priorities more effectively.

Retail sentiment on Kraft Heinz remained unchanged in the 'extremely bullish' territory, with chatter at 'high' levels, according to data from Stocktwits.

Kraft Heinz stated that the names of the two resulting companies will be determined at a later date. One of the companies would be a“Global Taste Elevation Co,” which will include Kraft Heinz's brands such as Heinz, Philadelphia, and Kraft Mac & Cheese. This company reported approximately $15.4 billion in net sales for 2024 and nearly $4.0 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the same year.

Kraft Heinz said the other company,“North American Grocery Co,” had approximately $10.4 billion in 2024 net sales and about $2.3 billion in 2024 adjusted EBITDA. This firm will be led by current Kraft Heinz CEO Carlos Abrams-Rivera and include a portfolio of brands such as Oscar Mayer, Kraft Singles, and Lunchables.

“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,” Patricio added.

The company stated its board has been working with an executive search firm to identify potential CEO candidates for“Global Taste Elevation Co” and that Kraft Heinz has no plans to change its current headquarters locations.

Kraft Heinz expects up to $300 million of dis-synergies, with clear opportunities to mitigate a substantial portion of these in the near term. The split is expected to be finalized in the second half of 2026.

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