Kraft Heinz Company to break up into two separate companies
The Kraft Heinz Company today announced that its Board of Directors has unanimously approved a plan to separate the company into two independent, publicly traded companies through a tax-free spin-off.
The separation is designed to maximize Kraft Heinz’s capabilities and brands while reducing complexity, allowing both new companies to more effectively deploy resources toward their distinct strategic priorities. This focus will enable stronger performance while preserving the scale to compete and win in today’s environment.
The two resulting companies, whose names will be determined at a later date, will be: Global Taste Elevation Co. that will oversee such products as Heinz, Philadelphia and Kraft Mac & Cheese; and North American Grocery Co. that will oversee such brands as Oscar Mayer, Kraft Singles and Lunchables.
“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,” said Miguel Patricio, executive chair of the Board for Kraft Heinz. “By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value. I look forward to working closely with Carlos and the Kraft Heinz team in the months ahead to prepare the organization for the separation.”
The separation will provide both companies with more strategic and operational focus, enabling them to dedicate the right level of attention and resources to all areas of the business, allowing each respective brand portfolio to reach its full potential; reduce operational complexity, driving further efficiencies and industry-leading margins; and customize capital allocation based on the strategic ambition of each company, accelerating performance and retaining financial flexibility.
READ: Kraft Heinz announces ‘strategic transactions’ in bid to unlock shareholder value
The companies are expected to have ample discretionary cash flow to invest in organic growth, return capital to shareholders and consider strategic transactions.
Carlos Abrams-Rivera, Kraft Heinz CEO, said, “This move will unleash the power of our brands and unlock the potential of our business. This next step in our transformation is only possible because of the commitment of our 36,000 talented employees who deliver quality and value for consumers every day. We will continue to operate as ‘one Kraft Heinz’ throughout the separation process.”
In May 2025, Kraft Heinz announced the company’s Board of Directors and executive leadership team had been evaluating potential strategic transactions to unlock shareholder value.
Following a thorough evaluation of potential strategic transactions, Kraft Heinz has determined that separating into two standalone companies, Global Taste Elevation Co. and North American Grocery Co., offered the most compelling opportunity to unlock long-term value for all Kraft Heinz shareholders.
