Foodservice
Kraft Heinz to split into 2 companies, citing brand complexity, shifting tastes
September 2, 2025
Kraft Heinz announced Tuesday its plan to split into two separate companies a decade after the merger that formed one of the world's largest food corporations. The move comes as the company seeks to adapt to shifting consumer tastes and improve its financial performance, according to an AP News report.
One new entity, tentatively named Global Taste Elevation Co., will focus on brands like Heinz, Philadelphia cream cheese, and Kraft Mac & Cheese. The other, North American Grocery Co., will manage brands including Oscar Mayer, Kraft Singles and Lunchables. The official names of the companies will be announced at a later date.
The 2015 merger of Kraft and Heinz aimed to capitalize on a massive scale but struggled as consumers increasingly sought healthier food options. Despite cost-cutting measures and layoffs, the combined company faced declining revenue and a $15.4 billion writedown in 2019 on the value of brands like Oscar Meyer and Kraft.
"Kraft Heinz's 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," Miguel Patricio, Kraft Heinz executive chair, stated.
The separation is expected to be finalized in the second half of 2026. Carlos Abrams-Rivera, the current CEO, will lead the North American Grocery Co., while a search for a new CEO for Global Taste Elevation Co. is underway.
