Kraft Heinz to split into two firms after failed mega-merger

Kraft Heinz is breaking up into two separate companies a decade after its high-profile merger, aiming to unlock greater shareholder value.

U.S. food giant Kraft Heinz is undergoing a major restructuring, announcing plans to split into two distinct companies by 2026. The move comes 10 years after the merger of Kraft Foods and H.J. Heinz, a deal once touted as a transformative step in the packaged foods industry.

The first company will centre its business around shelf-stable foods, leveraging popular brands such as Heinz sauces, Philadelphia cream cheese, and Kraft Mac & Cheese. The second entity will house a broader assortment of products, including Oscar Mayer deli meats, Maxwell House coffee, Capri Sun beverages, and Lunchables.

Executives hope the demerger will lead to greater investor confidence, with the combined value of the two independent companies expected to exceed the firm's current market valuation.

The 2015 merger was orchestrated by Warren Buffett’s Berkshire Hathaway and Brazil’s 3G Capital. While initially applauded by the market, the tie-up has faltered under sustained inflationary pressure and a shift in consumer preferences. Budget-conscious U.S. shoppers have increasingly turned to private-label alternatives, while smaller food startups have captured market share with innovative offerings.

In a strategic shift earlier this year, CEO Carlos Abrams-Rivera said the company was focusing its efforts on high-growth, high-margin categories, positioning itself as a "sauces and meals powerhouse."

Still, the damage to investor sentiment has been significant. By mid-2025, Kraft Heinz’s shares had fallen by nearly two-thirds from their post-merger peak, underlining the urgency of the split.

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