In a seismic move for the packaged foods industry, The Kraft Heinz Co. announced Tuesday that it will split into two publicly traded companies, effectively undoing much of the landmark 2015 merger that created the $28 billion food giant.
The board of directors unanimously approved the separation, which will be structured as a tax-free spin-off. The plan, the company said, aims to streamline operations, sharpen focus, and unlock the performance potential of its portfolio of household names.
Legal guidance comes from Paul Weiss Rifkind Wharton & Garrison LLP and Skadden Arps Slate Meagher & Flom LLP, underscoring the high stakes of the restructuring.
Two Distinct Identities Emerge
Under the new structure, Kraft Heinz will birth Global Taste Elevation Co., a global leader in sauces and meals with $15.4 billion projected 2024 net sales. Anchored by powerhouse brands Heinz, Philadelphia, and Kraft Mac & Cheese, it expects 75% of its sales to flow from sauces, spreads, and seasonings.
The second company, North American Grocery Co., will lean into staples beloved across U.S. households: Oscar Mayer, Kraft Singles, and Lunchables. It is projected to generate $10.4 billion in 2024 net sales, prioritizing operational efficiency, strong cash flow, and steady growth.
