Kraft Heinz Splits Into Two Companies After a Decade-Old Mega Merger

Kraft Heinz is breaking up. The company will split into two independent businesses by 2026. The announcement comes ten years after Kraft and Heinz merged to form one of the world’s biggest food giants.

The decision was confirmed by the company’s board. Kraft Heinz said the move aims to streamline operations and unlock better growth potential.

Kraft Heinz to Separate Into Global Taste and Grocery Units

The split will form two separate companies. One will be called Global Taste Elevation Co. This unit will focus on global brands like Heinz ketchup, Philadelphia cream cheese, and Kraft Mac & Cheese.

The other company will be North American Grocery Co. It will manage brands like Oscar Mayer, Kraft Singles, and Lunchables. These products are mainly sold in the U.S. and Canada.

Kraft Heinz said the split helps focus investments and simplify decisions. CEO Carlos Abrams-Rivera will lead the grocery division. A new CEO will be appointed for the global unit.

The official company names will be shared later. According to Reuters, the deal should close in the second half of 2026.

Why Kraft Heinz Is Splitting: What Went Wrong?

The 2015 merger aimed to build a food empire. Warren Buffett and 3G Capital were behind the $23 billion Heinz deal in 2013. They merged Heinz with Kraft two years later. The goal was simple: scale up and save costs.

But tastes changed. Consumers moved toward healthier, fresher foods. Kraft Heinz’s classic items—like Velveeta and Kool-Aid—lost appeal. Store brands also became serious rivals.

By 2019, the company wrote down its Oscar Mayer and Kraft brand values by $15.4 billion. It also sold off businesses like Planters and natural cheese. Yet sales kept falling.

Even after massive cost cuts, the company struggled. In 2024, Kraft Heinz lowered its full-year forecast again. Sales dropped, and tariffs added pressure.

The split is seen as a reset. Each new company can now target its core strengths. For investors, it could mean sharper focus and better returns.

Kraft Heinz to split a decade after megafood merger. The change marks a new chapter for a brand that once ruled American kitchens.

Info at your fingertips-

Q1: Why is Kraft Heinz splitting?

The company says it wants to focus better on key brands and markets. The split will help each new business grow on its own.

Q2: What will the new companies be called?

Temporary names are Global Taste Elevation Co. and North American Grocery Co. Official names will be announced later.

Q3: Who will lead the new companies?

CEO Carlos Abrams-Rivera will lead the grocery unit. A new CEO will be chosen for the global unit.

Q4: When will the Kraft Heinz split happen?

The company plans to complete the separation in the second half of 2026.

Q5: What does this mean for consumers?

Products and brands will stay the same. But you may see more focus on innovation and quality in each business.