Kraft Heinz Considers $20B Grocery Spin-Off

Kraft Heinz is reportedly planning to spin off a significant portion of its grocery business, including many Kraft-branded products, into a new entity that could be valued at up to $20 billion. This move comes nearly a decade after the Kraft-Heinz merger, with the company’s stock having declined by about 60% since 2015. The proposed split is intended to unlock shareholder value as consumers shift toward healthier options and inflation drives demand for cheaper foods. The remainder of Kraft Heinz would focus on its sauces and condiments, such as Heinz ketchup and Grey Poupon, though which brands will be included in the spinoff is still being determined. The board has not yet finalized the decision, but news of the potential breakup has led to a modest share price increase. Kraft Heinz has stated it is exploring strategic options but has not provided additional comments.