Kraft Heinz is pausing plans it announced last year to split into two companies—11 years after Kraft and Heinz merged to become The Kraft Heinz Co.
“Since joining the company, I have seen that the opportunity is larger than expected and that many of our challenges are fixable and within our control,” Steve Cahillane, CEO of Kraft Heinz, said Wednesday in a statement. Cahillane joined the company, which has headquarters in Chicago and Pittsburgh, as CEO on Jan. 1.
The company’s net sales decreased 3.5% in 2025 and 3.4% in the company’s fourth quarter, from October through December, the company also said Wednesday.
In September, the food giant said it was separating into two independent, publicly traded companies through a tax-free spinoff.
Cahillane said his top priority is returning the business to profitable growth, “which will require ensuring all resources are fully focused on the execution of our operating plan. As a result, we believe it is prudent to pause work related to the separation, and we will no longer incur related dis-synergies this year.”
Cahillane said that to accelerate the momentum Kraft Heinz is already seeing in its Taste Elevation portfolio and to drive recovery in its U.S. business, it is investing $600 million in marketing, sales and research and development.
“We are confident in the opportunity ahead and believe this investment will accelerate our return to profitable growth,” he said.
John T. Cahill, chair of Kraft Heinz’s board, said in the statement, “Kraft Heinz is already seeing the benefit of Steve’s deep industry experience and proven track record of building brands and leading large-scale transformations.”
When Cahillane joined Kraft Heinz in January, the company said he would serve as CEO of Global Taste Elevation Co. after Kraft Heinz’s planned separation into two independent, publicly traded companies.
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