The Epoch Times – Multinational food corporation The Kraft Heinz Company will split into two companies in a bid to boost profits and unlock shareholder value, the company said in a Sept. 2 statement.
Kraft Heinz was formed in 2015 by the merger of Kraft Foods and H.J. Heinz.
Since 2024, the company’s quarterly sales have consistently registered year-over-year declines, raising questions about its financial performance.
Kraft Heinz said that the decision to split into two independent, publicly traded companies was taken to enable stronger performance.
One of the spin-off companies will include brands such as Heinz, Philadelphia, and Kraft Mac & Cheese, with 75 percent of net sales coming from sauces, spreads, and seasonings. This group had combined net sales of $15.4 billion in 2024.
The second spin-off company will carry brands such as Oscar Mayer, Kraft Singles, and Lunchables, with the portfolio generating $10.4 billion in net sales last year.
According to Kraft Heinz, the separation plan has been “unanimously approved” by the company’s board of directors.
“The complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives, and drive scale in our most promising areas,” Miguel Patricio, executive chair of the board for Kraft Heinz, said.
“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.”
Buffett’s Response, Shares Fall
Warren Buffett’s Berkshire Hathaway and Brazilian investment firm 3G Capital were behind the merger back in 2015.
Buffett said in a Kraft statement at the time, “This is my kind of transaction, uniting two world-class organizations and delivering shareholder value.”
Following the latest announcement, Buffett said in an interview with CNBC that he was “disappointed” in the split …
