Kraft Heinz to split a decade after megafood merger
Kraft Heinz is divided into two companies after joining a major merger that created one of the largest food companies in the world.
Kraft Heinz said on Tuesday that one of the companies contained stable dishes and would include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese.
The other will include brands such as Oscar Mayer, Kraft Singles and Lunchables.
The names of the two companies will be published later.
Kraft Heinz said in May that the company carried out a strategic review and pointed to a potential division.
“Kraft Heinz’s brands are iconic and beloved, but the complexity of our existing structure, to effectively allocate capital, to give priority to initiatives and to scale in our most promising fields,” “Kraft Heinz’s brands,” He said.
The road to the merger of Kraft and Heinz, billionaire investor Warren Buffett’s HJ Heinz Co.
At that time, the $ 23 billion agreement was the most expensive in the food industry.
3G, called strict cost controls and zero -based budgeting, requires all costs to be justified every three months.
The agreement aimed to help Heinz, which was founded in 1869, to expand the sales of its fountains and sauces on the supermarket shelves.
Heinz’s new owners began to reduce costs by dismissing hundreds of workers in months.
At the same time, Kraft called for a partner after 2011 division from the Snack section of Mondelez International.
In 2015, Buffett and 3G decided to unite Heinz with Kraft, creating the world’s fifth largest food and beverage company, and $ 28 billion ($ 43 billion).
However, the United Company fought despite the dismissal of thousands of employees and other cost -lowering measures.
Even during the merger, many consumers were moving away from high-processed packed foods that Kraft sold as Velveeta cheese and Kool-Aid.
In 2019, Kraft Heinz, Oscar Meyer and Kraft Brands, indicated operational costs and supply chain problems, reduced USD $ 15.4 billion.
However, many investors blamed the leadership of the company and said that the cost of costing damage to brand innovation.
In 2021, Kraft Heinz sold Planters Nut and Natural Cheese business and promised to re -invest the money in higher growth brands.
However, the company’s net income has fallen every year since 2020, when it has an increase in pandemia in sales.
In April, Kraft Heinz stated the impact of weaker customer expenditures in the US and the tariffs of President Donald Trump and reduced full -year sales and earnings.
The transaction is expected to close in the second half of 2026.
