WASHINGTON — The Kraft Heinz Company is reportedly nearing a deal to separate into two distinct public companies, according to sources familiar with the deliberations, as reported by The Wall Street Journal and cited by multiple news outlets. This potential restructuring comes a decade after the merger of Kraft and Heinz, which was facilitated by Warren Buffett’s Berkshire Hathaway and private equity firm 3G Capital.
The proposed plan would see the company’s slower-growing grocery business, which includes brands like Kraft’s Macaroni & Cheese and Velveeta, spun off into a new entity that could be valued at up to $20 billion, according to a report from Dow Jones. The remaining company would focus on a “Taste Elevation” segment, encompassing high-margin condiments and sauces such as Heinz ketchup and Grey Poupon mustard. The restructuring is aimed at addressing a series of financial challenges, including increased manufacturing costs and a decline in profitability, which saw the company fall into the red in 2025, according to Seeking Alpha.
Since the initial reports of a potential split circulated, Kraft Heinz shares have seen a modest gain. The company’s financial performance has been under scrutiny, with declining revenue and a negative net margin, as noted by GuruFocus. Analysts cited by Seeking Alpha, however, are not unanimous on the value of the split, with one analyst stating, “I do not see how the separation will raise any value.” The company has been under pressure from investors to adapt to changing consumer preferences, which favor healthier, premium, and transparent-label products.
A final decision from the company’s board is pending, but an announcement could be finalized as early as next week.
