Kraft Heinz Confirms Split Into Two Public Companies by 2026

Kraft Heinz announced plans to split into two independent, publicly traded companies by 2026 to increase focus and drive growth for its distinct brand groups. The first company, tentatively named Global Taste Elevation Co., will handle global sauces, spreads, and ready meals, including Heinz, Kraft Mac & Cheese, and Philadelphia cream cheese, with a strong emphasis on international markets and foodservice. The second company, North American Grocery Co., will focus on staples like Oscar Mayer, Kraft Singles, and Lunchables, prioritizing operational efficiency and cash flow in the U.S. and Canada under the leadership of current CEO Carlos Abrams-Rivera. The breakup follows years of cost-cutting and declining sales amid changing consumer preferences and is designed to unlock value by allowing each entity to pursue tailored strategies and investments. While shareholders can expect stable dividends and potential for brand innovation, the separation carries risks including potential dis-synergies and execution challenges. This move reflects a broader industry trend toward specialization to better compete and innovate in evolving food markets.