Kraft Heinz giant splits into two listed companies
The Philadelphia and Oscar Mayer producer, which was integrated in 2015, is splitting into a sauce business and a food business in North America.
BarcelonaUS food giant Kraft Heinz has announced a plan to split into two companies after more than a decade of integration. One company will focus on sauces, condiments, and spreads, with brands such as Heinz ketchup and Philadelphia cheese, and the other on food products such as Oscar Mayer sausages in North America.
The company justifies the measure, unanimously approved by the board of directors, by the need to create businesses with a better strategic focus and less complexity. The sauces and condiments division, provisionally named Global Taste Elevation Co., achieved net sales of $15.4 billion (€13.191 billion) last year. Meanwhile, the North American grocery staples business, provisionally named North American Grocery Co., recorded net sales of $10.4 billion (€8.905 billion) in 2024.
According to the group's statement, both companies will be listed independently on the stock exchange and are expected to maintain their current dividend levels. "Kraft Heinz brands are iconic and beloved, but the complexity of our current structure makes it difficult to effectively allocate capital, prioritize initiatives, and grow in our most promising areas," said Miguel Patricio, executive chairman of the Kraft Heinz board of directors, in a statement.
