"Kraft Heinz is splitting into two a decade after a merger of the brands created one of the biggest food companies on the planet. One of the companies, currently called Global Taste Elevation Co., will include shelf stable meals and include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese, Kraft Heinz said Tuesday. The other, currently called North American Grocery Co., will include brands such as Oscar Mayer, Kraft Singles and Lunchables."
"The company in 2015 wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz and other food producers have shifted offerings to follow that trend. "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 Chair Miguel Patricio said in a statement."
Kraft Heinz will split into two public companies: Global Taste Elevation Co., housing shelf-stable meals including Heinz, Philadelphia and Kraft Mac & Cheese; and North American Grocery Co., housing Oscar Mayer, Kraft Singles and Lunchables. Official names will be released later. A strategic review initiated in May precipitated the split. The 2015 merger aimed to leverage scale but changing consumer taste for healthier options and organizational complexity hindered capital allocation and growth. The merged entity traces to a 2013 deal led by Warren Buffett and 3G Capital, whose cost-cutting and zero-based budgeting reshaped operations and prompted layoffs.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]