Kraft Heinz to Break Up a Decade After Megamerger

Jakub Porzycki / NurPhoto via Getty Images Kraft Heinz, whose products include Philadelphia cream cheese, is undoing a merger it created a decade ago.

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Kraft Heinz is planning to break up into two companies, undoing a merger that is just a decade old by splitting its North American grocery business from its sauces and spreads unit, which includes Philadelphia cream cheese. The grocery business, dubbed “North American Grocery Co.” includes Oscar Mayer, Kraft Singles, and Lunchables and would be led by current company CEO Carlos Abrams-Rivera. The companies' megamerger in 2015 created one of the world's leading food makers.

Kraft Heinz (KHC) is planning to break up into two companies, undoing a merger that is just a decade old by splitting its North American  grocery business from its sauces and spreads operation, which includes Philadelphia cream cheese.

The grocery business, dubbed “North American Grocery Co.” for now, includes Oscar Mayer, Kraft Singles, and Lunchables and would be led by current company CEO Carlos Abrams-Rivera. It had around $10.4 billion in 2024 net sales.

The  bigger “Global Taste Elevation Co.” will house Heinz, Philadelphia, and Kraft Mac & Cheese. It chalked up $15.4 billion in 2024 net sales, approximately 75% of which came from spreads, seasonings, and sauces.

“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,” Kraft Heinz Executive Chair Miguel Patricio 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.”

The companies' megamerger in 2015 created one of the world's leading food makers, known for brands like Philadelphia cream cheese, Cool Whip, Maxwell House coffee, and Stove Top stuffing. It said it expects the split to close in the second half of 2026.

The company said in May that it has been exploring potential transactions to unlock shareholder value and in July, The Wall Street Journalreported the company was planning a breakup. Kraft Heinz shares, which entered Monday down 9% so far this year, are little changed in premarket trading.

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