Kraft Heinz Eyes Split After Merger Underperformance

Kraft Heinz is reportedly considering a major breakup by spinning off its slower-growing grocery brands, such as Kraft cheese and Oscar Mayer meats, while retaining higher-growth segments like Heinz ketchup and Grey Poupon. The potential spin-off, valued at around $20 billion, follows years of underperformance since the 2015 Kraft-Heinz merger orchestrated by Berkshire Hathaway and 3G Capital, which has seen a significant loss in market value. RemainCo would focus on innovative, health-conscious products, aligning with consumer trends favoring fresher foods. The move is seen as a response to the merger's failure to drive growth and is part of a broader industry trend toward product line specialization. Kraft Heinz shares have already risen amid the speculation, and the development is closely monitored by bondholders and industry analysts. The split would continue Kraft Heinz's push to divest non-core businesses and adapt to a changing market landscape.