"Kraft Heinz is set to split into two different companies, one focused on groceries and the other on sauces and spreads. The spinoff, which is expected to close in the second half of 2026, is the latest in a series of rearrangements among major global consumer brands that once embraced the conglomerate model, but are now rethinking their business structure amid sluggish sales, depressed valuations, and tariffs."
"One of the companies, currently called Global Taste Elevation Co, will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese, the Kraft Heinz Company said. The other, currently called North American Grocery Co, will include legacy brands like Maxwell House, Oscar Mayer, Kraft Singles and Lunchables. The official names of the two companies have not been released yet."
"The 2015 merger that Warren Buffett's Berkshire Hathaway helped engineer alongside Brazilian private equity firm 3G Capital created a $45bn company, with a goal of cutting costs and boosting growth in iconic brands such as Heinz Beanz, Jell-O and Philadelphia cream cheese. Instead, shares have lost about 60 percent of their value in that time as consumers reined in spending, particularly in the wake of the COVID-19 pandemic."
Kraft Heinz will split into two companies, one currently called Global Taste Elevation Co housing brands like Heinz, Philadelphia cream cheese and Kraft Mac & Cheese, and the other currently called North American Grocery Co including Maxwell House, Oscar Mayer, Kraft Singles and Lunchables. The spinoff is expected to close in the second half of 2026. The split follows a 2015 merger that created a $45bn company but failed to deliver expected growth, with shares down about 60 percent since then. The company sold Planters and natural cheese in 2021 and has faced sluggish sales, depressed valuations, tariffs and reduced consumer spending.
Read at www.aljazeera.com
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