Kraft Heinz splits, unwinding merger that never paid off

Kraft Heinz will split into two companies, one focused on groceries and the other on sauces and spreads, it said on Tuesday, dismantling a packaged goods giant that never achieved the growth expected when it was formed a decade ago.

- REUTERS

The spinoff, which is expected to close in the second half of 2026, is the latest in a series of rearrangements among major global consumer brands that once embraced the conglomerate model, but are now rethinking their business structure amid sluggish sales, depressed valuations, and tariffs.

Wall Street had anticipated the breakup after the company said in May it would look for opportunities to boost shareholder value. Still, investors reacted negatively, with Kraft Heinz shares down 6 per cent in morning trading, amid a broader-market selloff.

The 2015 merger that Warren Buffett's Berkshire Hathaway helped engineer alongside Brazilian private equity firm 3G Capital was created with a goal of cutting costs and boosting growth in iconic brands such as Heinz beans, Jell-O and Philadelphia cream cheese.