Kraft Heinz splits into two publicly traded companies

One company, Global Taste Elevation Co., will focus on sauces and will combine brands such as Heinz, Philadelphia and Kraft Mac & Cheese. The other company, North American Grocery Co., will produce other products, including Kraft Singles (processed cheese), Oscar Mayer (meat products) and Lunchables (breakfast cereals). The former had revenue of $15.4 billion last year, while the latter had about $10.4 billion.

Miguel Patricio, executive chairman of the board, said that “by splitting into two companies, we will be able to better exploit the potential of each brand, achieve greater efficiency and better focus on the interests of shareholders over the long term.”

The separation was unanimously approved by the board of directors, and the process is expected to be completed in the second half of 2026.

North American Grocery Co. will be led by current Kraft Heinz CEO Carlos Abrams-Rivera. The company said in a statement that it has begun a search for potential candidates to lead Global Taste Elevation Co.

The company’s market capitalization has fallen about 9 percent so far this year to $33.1 billion.

Kraft Heinz was formed in 2015 through the merger of H.J. Heinz Co. and Kraft Foods Group Inc. The company’s products are sold in 190 countries.