US conglomerate Kraft Heinz to split into two companies: Report

Kraft Heinz, one of the world's largest food conglomerates, may split into two publicly listed companies. The Chicago-based company said that the two companies will be separated in order to reduce complexity and improve financial performance.

Kraft and Heinz merged into a singleunit in 2015, a mega merger facilitated by US investor Warren Buffett and the Brazilian private equity company 3G Capital.

According to The Guardian, one of the two future companies is provisionally called Global Taste Elevation Co. It will focus on products like sauces, spreads, and seasonings. Brands like Heinz, Philadelphia, and Kraft Mac & Cheese come under this business.

The other is called North American Grocery Co, which is led by the Kraft Heinz chief executive, Carlos Abrams-Rivera. The company will focus on grocery products like Oscar Mayer meats, Lunchables boxed meals, and Kraft Singles processed cheese.

Miguel Patricio, the executive chair of Kraft Heinz, told The Guardian: “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.”

Heinz was founded in the United States in 1869 by Henry J Heinz. Kraft was started by James L Kraft in 1903 as a wholesale cheese delivery business.

The company hinted in July that the food brand would change the corporate structure. The company was looking to spin off its grocery business.

The split, however, will not take place immediately. The two entities will begin separate operations during the second half of 2026.