Kraft Heinz taps Steve Cahillane as CEO ahead of breakup

Kraft Heinz It announced on Tuesday that former Kellanova CEO Steve Cahillane will lead the company ahead of the planned spin-off next year.

Cahillane will join owner Oscar Mayer as CEO on January 1. After Kraft Heinz splits into two publicly traded companies, he will serve as CEO of what he calls Global Taste Elevation, which includes fast-growing brands like Heinz, Philadelphia and Kraft Mac & Cheese.

Cahillane previously led Kellogg’s own dissolution in 2023. The company had separated its slowing North American cereal business from its high-growth snacks unit, which was later renamed Kellanova. Cahillane remained CEO of Kellanova until Mars acquired the company for $35.9 billion.

Outgoing Kraft Heinz CEO Carlos Abrams-Rivera was named head of the other company, initially known as North American Grocery. However, he will now serve as an advisor until March 6. Abrams-Rivera has served as the food giant’s chief executive since 2024.

Kraft Heinz’s board of directors will launch a search for a chief executive who will manage its portfolio of staple food products, which includes brands such as Oscar Mayer and Kraft Singles.

As part of the transition, John Cahill, who served as CEO during Kraft’s merger with Heinz a decade ago, will replace Miguel Patricio as chairman.

Kraft Heinz anticipates the separation will occur in the second half of 2026. The company announced its separation plans in September after years of slowing sales despite recovery efforts. The split reversed much of the $46 billion blockbuster merger a decade ago that created one of the world’s largest food companies.

Kraft Heinz shares rose slightly in premarket trading. The stock is down nearly 20 percent this year.

Programming note: Steve Cahillane will speak on CNBC’s “Squawk on the Street” on Tuesday at 10:10.