Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet.
One of the companies, currently called Global Taste Elevation Co., will include shelf stable meals and include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese, Kraft Heinz said Tuesday. The other, currently called North American Grocery Co., will include brands such as Oscar Mayer, Kraft Singles and Lunchables. The official names of the two companies will be released later.
Kraft Heinz said in May that it was conducting a strategic review of the company, signaling a potential split.
The company in 2015 wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz and other food producers have shifted offerings to follow that trend.
“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,” Executive Chair Miguel Patricio said in a statement.
The path to the merger of Kraft and Heinz began in 2013, when billionaire investor Warren Buffett teamed up with Brazilian investment firm 3G Capital to buy H.J. Heinz Co. At the time, the $23 billion deal was the most expensive ever in the food industry.
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Author: Ray Hilbrich
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