Kraft Heinz Announces Plan to Split into Two Public Companies

PITTSBURGH/CHICAGO, Sept. 2, 2025 - The Kraft Heinz Company (Nasdaq: KHC) today unveiled a plan to separate into two independent, publicly traded entities in a tax-free spin-off designed to sharpen strategic focus and accelerate growth. The board unanimously approved the move as the packaged-food giant confronts sluggish sales and seeks to unlock shareholder value.

The reorganization will create:

• Global Taste Elevation Co., consolidating the sauces and shelf-stable meals portfolio-including Heinz ketchup, Philadelphia cream cheese and Kraft Mac & Cheese-with approximately $15.4 billion in 2024 revenue and $4.0 billion in 2024 Adjusted EBITDA.
• North American Grocery Co., comprising Oscar Mayer, Kraft Singles and Lunchables, which generated about $10.4 billion in net sales and $2.3 billion in Adjusted EBITDA last year.

Miguel Patricio, executive chair of Kraft Heinz’s board, said, “Our 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. By separating into two companies, we can dedicate the right level of attention and resources to unlock each portfolio’s full potential”.

The transaction is expected to be completed in the second half of 2026, pending customary conditions including final board approval, SEC filings and receipt of a tax opinion confirming the spin-off’s tax-free status. Kraft Heinz will maintain its current headquarters, and the board has formed a Separation Committee led by Vice Chair John Cahill to oversee the process.

In premarket trading on Tuesday, Kraft Heinz shares rose by about 1%, partly reflecting investor optimism after a year in which the stock lost approximately 21% of its value amid heightened competition and shifting consumer preferences.