(Reuters) -Kraft Heinz said on Tuesday it will split its grocery and sauces businesses into two publicly traded companies, responding to sluggish consumer spending.
The split, which is expected to close in the second half of 2026, unravels a decade-old merger that formed the packaged foods giant.
Here is a breakdown of the two new companies and their focus areas:
Global Taste Elevation Co ($15.4 billion in 2024 net sales)
** Will house well-known brands such as billion-dollar labels Heinz, Philadelphia and Kraft Mac & Cheese
** Will focus on products like sauces, spreads, and shelf-stable meals.
** The unit made $4 billion in core profit in 2024
** Will be a global business, about 20% of net sales last year came from emerging markets
** Company looking for a CEO for the unit
North American Grocery ($10.4 billion in 2024 net sales)
** To comprise frozen meat and ready-to-eat brands, including billion dollar names Oscar Mayer, Kraft Singles, and Lunchables
** Will focus on everyday grocery items sold mainly in North America
** The unit made $2.3 billion in core profit in 2024
** Will be led by Carlos Abrams-Rivera, the current CEO of Kraft Heinz
Source: Company statement
(Reporting by Anshi Sancheti in Bengaluru; Editing by Sriraj Kalluvila)
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