Kraft Heinz Co. is preparing to share, said familiar people with the subject.
According to the plan, the company could dismember a large part of its food business in a new entity, according to these sources. This would allow the company to focus on faster growth segments, such as sauces, they said.
Kraft Heinz is still finalizing the details of the division, which could be announced in the coming weeks, the sources said, who asked not to be identified for discussing confidential information.
Kraft Heinz shares were being negotiated at 1.3% at 2:30 pm in New York on Friday (11), giving the company a market value of about $ 31.7 billion. THE Wall Street Journal He had reported the plans earlier on Friday.
“As announced in May, Kraft Heinz has evaluated potential strategic transactions to unlock value for shareholders,” said a company spokesman in response to an appointment of Bloomberg.
Kraft Heinz was formed in a merger in 2015 orchestrated by Warren Buffett’s 3G Capital and Berkshire Hathaway. The agreement has created a giant of packed foods with a series of well-known brands, from ketchup Heinz and classic tomato sauce to Jell-O and the Oscar Mayer hot dogs.
Continues after advertising
But the combined company has been facing difficulties to expand its sales, with falling revenue over the past two years, as consumer tastes change and competition intensifies. Profitability, measured by the operational margin, also fell in the latest year. In April, Kraft Heinz reduced its annual sales and profit projections, quoting worse in the consumer’s feeling.
Packed food companies, more broadly, are facing changes in consumer behavior, which opt for healthier and less processed options, as well as cheaper own brands. Federal regulators also press through lists of shorter and more natural ingredients.
A reconfiguration of the packed food world accelerated this week when the Italian candy manufacturer Ferrero International agreed to purchase WK Kellogg, manufacturer of cereals Froot Loops and other icons.
Continues after advertising
The value of business in the basic consumer goods sector has increased more than one third this year, reaching US $ 138 billion, show data compiled by Bloombergdriven by food companies. THE Bloomberg News On Friday, he reported on Friday that Performance Food Group attracted US Foods acquisition interest, a possible agreement that would create a food distribution company combined about $ 100 billion.
© 2025 Bloomberg L.P.
