Singapore – The Kraft Heinz Company announced that its board of directors has unanimously approved a plan to separate the business into two independent, publicly traded companies through a tax-free spin-off. The move is intended to simplify operations, sharpen strategic focus, and unlock long-term shareholder value, the company said.
The two new companies, whose final names will be announced at a later date, are currently referred to as “Global Taste Elevation Co.” and “North American Grocery Co.”
Global Taste Elevation Co. will focus on taste enhancement and shelf-stable meals. It is expected to generate approximately $15.4 billion in 2024 net sales and about $4.0 billion in adjusted EBITDA. The business will include brands such as Heinz, Philadelphia, and Kraft Mac & Cheese, with sauces, spreads, and seasonings accounting for around 75% of its sales.
Meanwhile, North American Grocery Co. will center on staple food categories in the US and Canada. The company is projected to deliver approximately $10.4 billion in 2024 net sales and $2.3 billion in adjusted EBITDA. Its portfolio will feature brands including Oscar Mayer, Kraft Singles, and Lunchables, with 75% of sales coming from leading positions in their categories. Carlos Abrams-Rivera, current CEO of Kraft Heinz, will lead the business.
“Kraft Heinz’s brands are iconic and beloved, but 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.
He added, “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. I look forward to working closely with Carlos and the Kraft Heinz team in the months ahead to prepare the organization for the separation.”
The company said the separation will allow each new entity to dedicate resources more effectively, reduce complexity, and tailor capital allocation strategies. Management expects the combined dividend level to be maintained and is targeting investment-grade ratings for both businesses.
Abrams-Rivera said, “This move will unleash the power of our brands and unlock the potential of our business. This next step in our transformation is only possible because of the commitment of our 36,000 talented employees who deliver quality and value for consumers every day. We will continue to operate as ‘one Kraft Heinz’ throughout the separation process.”
The decision follows a strategic review launched in May 2025, which evaluated potential options for driving growth and shareholder returns.
“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.
Leadership changes will accompany the move. Abrams-Rivera will become CEO of North American Grocery Co., while a search is underway for a CEO to lead Global Taste Elevation Co. Kraft Heinz will retain its current headquarters locations.
In connection with the split, Patricio, who has served as chair of the board since 2022 and was previously CEO, will become executive chair. John Cahill, vice chair of the Board, will lead a newly formed Separation Committee tasked with overseeing the process.
“We believe these changes will best position us to execute on our plan to separate into two independent, publicly traded companies. Prior to the completion of the separation, our focus will continue to be on accelerating profitable growth and delivering shareholder value,” Pope said.
