The Kraft Heinz Company said Tuesday its board unanimously approved a plan to split the food giant into two independent, publicly traded companies through a tax-free spin-off, a move the company says will simplify its structure and “unlock long-term shareholder value.” Executives said the combined dividend level is expected to be maintained and both new firms will target investment-grade credit ratings.
One entity, temporarily labeled “Global Taste Elevation Co.,” will house faster-growth categories such as sauces, spreads, seasonings and shelf-stable meals. The company reported about $15.4 billion in 2024 net sales and roughly $4.0 billion in 2024 adjusted EBITDA, with Heinz, Philadelphia and Kraft Mac & Cheese among its three billion-dollar brands. Roughly 20% of sales come from emerging markets and another 20% from away-from-home channels. A CEO search is under way.
The second entity, “North American Grocery Co.,” will group core U.S. and Canadian staples—brands including Oscar Mayer, Kraft Singles and Lunchables—generating about $10.4 billion in 2024 net sales and roughly $2.3 billion in adjusted EBITDA. Current Kraft Heinz CEO Carlos Abrams-Rivera will lead this business after the split. The company said about three-quarters of its sales come from brands ranked No. 1 or No. 2 in their categories.
“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively,” Executive Chair Miguel Patricio said, arguing a separation allows “the right level of attention and resources” for each brand family. Abrams-Rivera called the move “the next step in our transformation,” crediting the company’s 36,000 employees.
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“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.”
— Miguel Patricio, Executive Chair of the Board, as quoted by Kraft Heinz
Patricio, currently chair of the board, will become Executive Chair for the transition. The board created a Separation Committee led by Vice Chair John Cahill to oversee execution. Lead Director Jack Pope said the decision followed a comprehensive review and that increased focus should translate into better performance and value creation. Headquarters locations will not change.
Kraft Heinz said the plan follows a strategic review launched in May 2025 built around five principles, including sustaining financial discipline, minimizing complexity and dis-synergies, and preserving balance-sheet flexibility. The company expects up to $300 million in dis-synergies from the split but says it can mitigate a substantial portion in the near term. Closing is targeted for the second half of 2026, subject to customary conditions—including final board approval, a favorable tax opinion and effective SEC filings.
The company added that, post-separation, each business will be able to tailor capital allocation and invest in organic growth, return capital to shareholders and evaluate strategic deals—while, in aggregate, keeping today’s dividend level. (Adjusted EBITDA figures are non-GAAP and based on 2024 internal reporting.)
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