US-based food company Kraft Heinz has announced its plans to separate into two publicly traded entities, to streamline operations and enhance brand focus.
The split, planned to be executed as a tax-free spin-off, will create Global Taste Elevation Co. and North American Grocery Co.
Global Taste Elevation will focus on taste elevation and shelf-stable meals markets with brands like Heinz and Kraft Mac & Cheese.
North American Grocery will manage brands such as Oscar Mayer and Kraft Singles, targeting operational efficiency and cash flow stability.
Both companies aim to invest in organic growth and strategic transactions while maintaining financial flexibility.
Kraft Heinz board executive chair Miguel Patricio said: “Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritise initiatives and drive scale in our most promising areas.
“By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value.
“I look forward to working closely with Carlos and the Kraft Heinz team in the months ahead to prepare the organisation for the separation.”
The proposed transaction has been unanimously approved by the Kraft Heinz board of directors.
It is expected to close in the second half of 2026, pending customary closing conditions and regulatory approvals.
The move is expected to maintain Kraft Heinz’s current dividend level and ensure that both newly formed companies retain investment-grade ratings.
Kraft Heinz board lead director Jack Pope said: “The Board’s unanimous decision to separate into two independent companies came after careful consideration and a comprehensive evaluation of our options.
“We strongly believe that increased focus will translate into better performance and value creation for shareholders. We believe these changes will best position us to execute on our plan to separate into two independent, publicly traded companies.
“Prior to the completion of the separation, our focus will continue to be on accelerating profitable growth and delivering shareholder value.”
The separation, driven by an emphasis on reducing operational complexity and enhancing resource allocation, follows a strategic review initiated in May 2025.
Carlos Abrams-Rivera will continue as CEO of Kraft Heinz and later lead North American Grocery. The board is currently in search of a CEO for Global Taste Elevation.
Miguel Patricio will be appointed as executive chair of the company, working with Abrams-Rivera on the separation process.
The board has formed a Separation Committee led by John Cahill to oversee the transition.
Kraft Heinz CEO Carlos Abrams-Rivera said: “This move will unleash the power of our brands and unlock the potential of our business.
“The next step in our transformation is only possible because of the commitment of our 36,000 talented employees who deliver quality and value for consumers every day. We will continue to operate as ‘one Kraft Heinz’ throughout the separation process.”
