Kraft Heinz announced Tuesday that it will split into two publicly traded companies in 2026, marking the end of its troubled decade-long merger, according to CNN.
One new company will house faster-growing brands like Heinz ketchup, Kraft Mac & Cheese, and Philadelphia cream cheese. The other will focus on slower-performing grocery staples and food-service products, including Oscar Mayer, Kraft Singles and Lunchables. Executives say the breakup will allow each business to better focus on growth and allocate resources more effectively.
The move reverses the 2015 $55 billion merger engineered by Warren Buffett’s Berkshire Hathaway and 3G Capital, which created North America’s third-largest food company but struggled to adapt to changing consumer tastes. Kraft Heinz’s sales have fallen for seven straight quarters, and its shares are down more than 60% since the merger.
Analysts say the split mirrors Kellogg’s 2023 restructuring, when it spun off its snack brands into Kellanova. With packaged food companies facing shrinking demand, health-conscious shoppers and pressure to cut additives, Kraft Heinz hopes the split will give its iconic but struggling brands a chance to recover.
