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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.

Leadership and Strategy

Carlos Abrams-Rivera, Kraft Heinz’s current CEO, will take the helm of North American Grocery Co., while a global search is underway to find a leader for Global Taste Elevation Co.

In a statement, Abrams-Rivera emphasized that the restructuring represents the next step in a broader transformation:

“This move will unleash the power of our brands and unlock the potential of our business. It’s only possible thanks to the commitment of our 36,000 talented employees who deliver quality and value daily. We will continue to operate as ‘one Kraft Heinz’ throughout the separation process.”

Closing Timeline and Advisers

The transaction, subject to customary approvals, is expected to close in the second half of 2026.

Centerview Partners is serving as financial adviser, while Skadden’s team includes partners Brandon Van Dyke, Kyle Hatton, David Rievman, and Janine Jjingo. The Paul Weiss team is led by partners Stan Richards and Jeffrey D. Marell.

What It Means for Consumers and the Market

The restructuring signals a historic pivot for Kraft Heinz. By splitting into two focused giants — one global and sauce-driven, the other rooted in North American staples — the company is betting on sharper strategies to stay competitive in a crowded market.

For shoppers, it means the Heinz ketchup bottle, Kraft Singles, and Oscar Mayer hot dogs will remain household staples, but under a new corporate roof — proof that even century-old brands must evolve to survive.