Kraft Heinz to Split into Two Public Companies by 2026

The Kraft Heinz Company has announced plans to separate into two independent, publicly traded businesses in a tax-free spin-off, a move aimed at accelerating growth, sharpening strategic focus, and unlocking long-term shareholder value.

The transaction, approved unanimously by the board, is expected to close in the second half of 2026. Both new entities will target investment-grade capital structures and, in aggregate, are expected to maintain Kraft Heinz’s current dividend level.

The separation will create:

• Global Taste Elevation Co. – a global leader in sauces, spreads, seasonings and shelf-stable meals, with EUR14.3bn in 2024 net sales and EUR3.7bn in adjusted EBITDA. Anchored by Heinz, Philadelphia, and Kraft Mac & Cheese, this company will derive about 75% of sales from taste elevation categories, with significant exposure to emerging markets and foodservice.
• North American Grocery Co. – a portfolio of core staples generating EUR9.6bn in 2024 net sales and EUR2.1bn in adjusted EBITDA. Led by Oscar Mayer, Kraft Singles and Lunchables, around three-quarters of its sales come from category leaders. This company will focus on operational efficiency and reliable cash generation, while pursuing growth in adjacencies and Away From Home.

Carlos Abrams-Rivera, current CEO of Kraft Heinz, will lead North American Grocery Co. The board has begun a search for a chief executive for Global Taste Elevation Co. Miguel Patricio, current chair, will serve as executive chair of the overall board during the transition.

A separation committee, chaired by vice chair John Cahill, has been formed to oversee execution. The company expects up to EUR280m in dis-synergies but plans to mitigate a large portion of these. Headquarters will remain unchanged.

Kraft Heinz said the restructuring will simplify operations, enable more effective capital allocation, and provide both companies with the agility to compete in their respective markets.