"But shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz and other food producers have tried to follow those trends. In 2021, Kraft Heinz sold both its Planters nut business and its natural cheese business, vowing to reinvest the money into higher-growth brands like P3 protein snacks and Lunchables. But the company continued to struggle, and Kraft Heinz's net sales fell 3% in 2024."
"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. The path to the merger of Kraft and Heinz began in 2013, when billionaire investor Warren Buffett teamed up with Brazilian investment firm 3G Capital to buy H.J. Heinz Co. At the time, the $23 billion deal was the most expensive ever in the food industry."
Kraft Heinz will split into two companies, one now called Global Taste Elevation Co. including brands such as Heinz, Philadelphia and Kraft Mac & Cheese, and the other now called North American Grocery Co. including Maxwell House, Oscar Mayer, Kraft Singles and Lunchables. Official company names will be released later and the transaction is expected to close in the second half of 2026. The split follows a strategic review after efforts to reposition the portfolio, sales declines, and prior divestments such as Planters and natural cheese. The company faced shifting consumer tastes and challenges allocating capital across a complex structure.
Read at ABC7 Los Angeles
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