Kraft Heinz Just Made a Major Announcement

Typically when we see the name Kraft Heinz making headlines it’s because the company is dropping exciting new products, like single-serve Velveeta and pizza-flavored macaroni and cheese. But recently, the company has been in the news for other reasons.

In June, focus was shifted to the company’s ingredients after it announced it would be removing all Food, Drug, & Cosmetic (FD&C) colors from its entire lineup by 2027.

Now, Kraft Heinz is in the spotlight once again because it announced another major brand change is on the way.

Kraft Heinz Announces Plan to Split Into 2 Separate Companies

On Sept. 2, Kraft Heinz announced it will separate into two companies. Kraft Foods Group and H.J. Heinz Holding Corporation first merged in 2015, and since then, Kraft Heinz has dominated the industry with some of the biggest names in food.

But even though its portfolio contains a long list of successful brands, the company’s stock prices have continued on a downward trend for years. Kraft Heinz says the split is strategic and the decision will allow greater focus on individual brands, increased overall shareholder value, and more profitable growth. 

“We strongly believe that increased focus will translate into better performance and value creation for shareholders,” said Jack Pope, Lead Director of the Kraft Heinz board.

According to the press release, the two resulting companies have not yet been named, but Kraft Heinz offered insight into how the brands will be divided. The group will be separated into two entities: Global Taste Elevation Co. and North American Grocery Co. 

Global Taste Elevation Co. will include “shelf-stable meals with a portfolio of iconic brands and local jewels,” including Heinz, Philadelphia, ABC, and Kraft Mac & Cheese. Additionally, it will house sauces, spreads, and seasonings. 

North American Grocery Co., on the other hand, will shift its focus to brands including Oscar Mayer, Kraft Singles, Ore-Ida, and Lunchables. 

So, What Does This Mean for Shoppers?

At this time, it’s not clear how, or if, the change will affect consumers. As this process begins, many changes are internal. Before completion, Kraft Heinz will have to obtain final approval from its board of directors and the U.S. Securities and Exchange Commission, which is not expected to take place until the second half of 2026. 

Moving forward, Kraft Heinz believes the split will allow time to focus on future growth and better serve customers. “This move will unleash the power of our brands and unlock the potential of our business,” said Carlos Abrams-Rivera, Kraft Heinz CEO.