Kraft Heinz will divide into two publicly traded businesses by late 2026 to sharpen marketing focus and simplify capital allocation across distinct brand portfolios. Global Taste Elevation Co. will house Heinz sauces and spreads while North American Grocery Co. will include Oscar Mayer, Kraft Singles, Maxwell House and Lunchables. Shares fell about 7% after the announcement amid a decade of underperformance that erased roughly $57 billion in market value and produced about $15 billion in write-downs. Berkshire Hathaway retains a 27.5% stake. Carlos Abrams-Rivera will lead the North American Grocery unit; a CEO search will begin for Global Taste Elevation.
Kraft Heinz, the packaged-food giant created in 2015 by Warren Buffett and Brazilian private-equity firm 3G Capital, is officially breaking up. The Tuesday announcement ends one of Buffett's highest-profile bets-and one of his most painful-as the merger that once promised efficiency and dominance instead wiped out roughly $57 billion, or 60%, in market value. Shares slid 7% after the announcement, and Buffett, whose Berkshire Hathaway still owns a 27.5% stake, was blunt about his feelings.
Global Taste Elevation Co. will be focused on the classic Heinz sauces, spreads, and condiments, including Heinz ketchup, Kraft Mac & Cheese, and Philadelphia cream cheese. North American Grocery Co. will be home to iconic staples like Oscar Mayer, Kraft Singles, Maxwell House, and Lunchables. Current CEO Carlos Abrams-Rivera will lead this unit, while the board searches for a new leader for Global Taste Elevation.
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