Kraft Heinz pauses work to split the company as new CEO says ‘challenges are fixable’
Kraft Heinz announced plans to split into two separate companies in September 2025, reversing a 2015 megamerger overseen by billionaire investor Warren Buffett.
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Kraft Heinz On Wednesday he said he was pause work had previously announced plans to split the company.
The company’s shares fell 6% in premarket trading.
CEO Steve Cahillane, who joined Kraft Heinz in January, said in a statement that many of the company’s problems were “fixable and under our control.”
“My number one priority is to return the business to profitable growth, which will require all resources to be fully focused on the execution of our operating plan,” he said. “As a result, we believe it is prudent to pause work on the separation and will no longer incur related synergies this year.”
Kraft Heinz also plans to invest $600 million to recover its U.S. business. The company plans to spend the money on marketing, sales and research and development activities. The investment will also be aimed at “product superiority and premium pricing,” according to Cahillane.
In September, the company announced plans to split, reversing much of the blockbuster $46 billion merger a decade ago that created one of the world’s largest food companies.
Although investors initially welcomed the merger, the luster faded as the combined company’s U.S. sales fell and the company wrote off many of its iconic brands, such as Oscar Mayer and Maxwell House. Kraft Heinz has been in turnaround mode for at least six years, trying to revive its U.S. business.
Warren Buffett, who helped plan the deal, said he was disappointed in the decision to leave. Berkshire Hathaway has since taken a formal step to buy back its 28% stake in Kraft Heinz.
In December, Kraft Heinz announced Cahillane’s hiring. He had previously led Kellogg’s own breakup and then chaired spinoff Kellanova until its sale to Mars.
In addition to the announcement, Kraft Heinz also reported its quarterly results before the bell on Wednesday. The company’s earnings beat Wall Street’s forecasts, but its quarterly revenue fell short of analysts’ forecasts.
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