A decade after Kraft and Heinz merged to become The Kraft Heinz Co., and following a strategic review, the food giant is separating into two independent, publicly traded companies through a tax-free spinoff. The two resulting companies, the names of which will be determined later, will be called “Global Taste Elevation Co.” and “North American Grocery Co.”
Global Taste Elevation will offer shelf-stable meals. This company will include a roster of brands including three billion-dollar brands—Heinz, Philadelphia and Kraft Mac & Cheese—with approximately 75% of net sales coming from sauces, spreads and seasonings.It represents approximately $15.4 billion in 2024 net sales and approximately $4 billion in 2024 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). Approximately 20% of 2024 net sales are in emerging markets and approximately 20% are in away from home.
The Kraft Heinz board has been working with a nationally recognized global executive search firm to identify potential CEO candidates for the unit.
North American Grocery, which will be led by current Kraft Heinz CEO Carlos Abrams-Rivera, will include a portfolio of brands including three billion-dollar brands—Oscar Mayer, Kraft Singles and Lunchables. Approximately 75% of net sales come from brands that are No. 1 or No. 2 in their respective categories, the company said. It represents a scaled portfolio of North America staples with approximately $10.4 billion in 2024 net sales and approximately $2.3 billion in 2024 adjusted EBITDA.
“The complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” said Miguel Patricio, executive chair of the board for Kraft Heinz. “By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value.”
Each company will be able to customize capital allocation based on the “strategic ambition” of each company, accelerating performance and retaining financial flexibility, he said.
“This move will unleash the power of our brands and unlock the potential of our business,” Abrams-Rivera said. “We will continue to operate as ‘one Kraft Heinz’ throughout the separation process.”
Kraft Heinz has no plans to change its current headquarter locations, the company said.
Merger
In March 2015, H.J. Heinz Co., Pittsburgh, and Kraft Foods Group Inc., Northfield, Illinois, entered into a definitive merger agreement to create The Kraft Heinz Co., forming the third-largest food and beverage company in North America.
“The complementary nature of the two brand portfolios presents substantial opportunity for synergies, which will result in increased investments in marketing and innovation,” the companies said at the time.
In late 2021, Kraft Heinz combined its U.S. and Canada businesses in a move meant to advance the company’s long-term growth plans by bringing increased agility to its innovation agenda, operations and go-to-market approach, it said.
In May 2025, Kraft Heinz announced that its board and executive leadership team was evaluating potential strategic transactions to unlock shareholder value.
“The board’s unanimous decision to separate into two independent companies came after careful consideration and a comprehensive evaluation of our options. We strongly believe that increased focus will translate into better performance and value creation for shareholders,” said Jack Pope, lead director of the Kraft Heinz board.
The board has also formed a separation committee, led by John Cahill, vice chair of the board, to oversee the execution of the proposed separation.
The proposed separation is intended to be tax-free for Kraft Heinz and its shareholders, the company said. It anticipates up to $300 million of “dis-synergies,” with opportunities to mitigate a substantial portion of these in the near term.
Kraft Heinz currently expects the transaction to close in the second half of 2026, after satisfying customary conditions, including final approval by the Kraft Heinz board; receipt of a tax opinion with respect to the tax-free nature of the separation; and completing filings with the U.S. Securities and Exchange Commission (SEC).
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