September 2 2025 16:45
Kraft Heinz CEO, Carlos Abrams-Rivera
The Kraft Heinz Co. will separate into two independent, publicly traded companies through a tax-free spin-off. The separation is designed to help Kraft Heinz’s capabilities and brands while reducing complexity, allowing both new companies to deploy resources toward their distinct strategic priorities, the massive company said in a statement.
The two resulting companies, whose names will be determined at a later date, will be Global Taste Elevation Company and North American Company.
Global Taste Elevation Company would provide “taste elevation and shelf-stable meals with approximately $15.4bn in 2024 net sales and approximately $4bn in 2024 adjusted earnings before interest, tax, depreciation and amortisation expenses (EBITDA)”. The company will include a roster of Heinz, Philadelphia and Kraft Mac & Cheese, with approximately 75% of net sales coming from sauces, spreads and seasonings.
North American Grocery Company would include a portfolio of “North America staples with approximately $10.4 billion in 2024 net sales and approximately $2.3bn in 2024 adjusted earnings before interest, tax, depreciation and amortisation expenses (EBITDA). This company will be led by Carlos Abrams-Rivera and will include a portfolio of brands, such as three “billion-dollar brands”: Oscar Meyer, Kraft Singles and Lunchables.
“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,” said Miguel Patricio, executive chair of the board for Kraft Heinz.
“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 organization for the separation,” he said.
The separation will provide both companies with more strategic and operational focus, according to Patricio.
“This move will unleash the power of our brands and unlock the potential of our business. This 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,” Kraft Heinz CEO, Carlos Abrams-Rivera said.
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