Kraft Heinz Plans Split into Two Public Companies

Kraft Heinz announced plans to split into two independent, publicly traded companies through a tax-free spin-off expected to close in the second half of 2026, aiming to improve strategic focus and unlock shareholder value. The split will separate the slower-growing grocery business, including brands such as Oscar Mayer, Kraft Singles, and Lunchables, from the faster-growing segment focusing on sauces, condiments, and shelf-stable meals featuring Heinz ketchup, Philadelphia cream cheese, and Kraft Mac & Cheese. This move follows years of financial challenges, including declining sales and profitability, amid changing consumer preferences away from highly processed foods. Executive Chair Miguel Patricio highlighted that the current corporate structure's complexity hindered effective capital allocation and scaling in promising areas. Analysts have mixed views on the stock, with some rating it as Hold or Reduce due to profitability issues, while others note potential growth in emerging markets and high dividend yields. The split marks a strategic restructuring a decade after the companies merged to form the global food giant.