Kraft Heinz Company announced that it will split into two separate public companies

The American Kraft Heinz Company, one of the largest food manufacturers in the world, announced on Tuesday that it will split into two separate public companies.

According to the press release, the first company, called Global Taste Elevation Company, will focus on producing sauces and will combine brands like Heinz, Philadelphia, and Kraft Mac & Cheese. The second company, North American Grocery Company, will produce other products, including processed cheese under the Kraft Singles brand, meat products under the Oscar Mayer brand, and ready-made breakfasts under the Lunchables brand.

The sales of the first company in 2024 are estimated to be around $15.4 billion, of which 75% will be from sauces. The grocery business’s sales are expected to be around $10.4 billion.

“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure has made it difficult to allocate capital efficiently, prioritize, and scale in the most promising areas,” said Miguel Patricio, Executive Chairman of the Board of Directors. “By splitting into two companies, we will be able to focus on each brand individually, devoting the necessary attention and resources to unlock their potential, increasing efficiency, and creating long-term value for shareholders.”

The Board of Directors unanimously approved the separation. The company expects the process to be completed in the second half of 2026.

North American Grocery Company will be led by the current CEO of Kraft Heinz, Carlos Abrams-Rivera. The search for a new head of Global Taste Elevation Company has already begun.

In May, Kraft Heinz announced it was exploring potential strategic moves to increase shareholder value.

Shares of Kraft Heinz have risen by 0.3% in preliminary trading on Tuesday. This year, the company’s capitalization has decreased by almost 9% (to $33.1 billion), while the Nasdaq Composite stock index has increased by more than 11%.

Kraft Heinz was founded in 2015 through the merger of H.J. Heinz Co. and Kraft Foods Group Inc. Its products are sold in more than 190 countries.