Kraft Heinz may be considering a business split after a decade since the mega-merger of Kraft Foods and HJ Heinz. Berkshire Hathaway and private-equity firm 3G Capital are also involved, with Kraft Heinz generating $26bn in revenue last year.
Ferrero recently acquired WK Kellogg for $3.1bn, with the other part, Kellanova, being taken over by Mars for $35.9bn. Kraft Heinz is rumored to be considering a spin-off valued at $20bn, focusing on its grocery business.
Industry analysts are speculating on the potential split of Kraft Heinz, with Stifel suggesting a separation of slower-growth and competitive categories from faster-growing assets. This could include brands like Mac & Cheese and Ore-Ida in one entity and Oscar Mayer meats and Jell-O desserts in another.
Former General Mills executive Peter McDonald criticized the failed 2015 merger of Kraft Heinz, calling it a dark chapter in the CPG food industry. He highlighted the company’s aggressive margin expansion playbook and subsequent decline in enterprise value to $50bn.
Kraft Heinz reported a drop in sales and net income for 2024 and a poor performance in the first quarter of 2025. The company also adjusted its 2025 outlook due to input-cost inflation. The potential strategic transaction is still under assessment without a set timeline for completion.
Analysts like Robert Moskow from TD Cowen are estimating the valuation of a potential Kraft Heinz spin-off and speculating on potential buyers like McCormick. The focus is on unlocking value in the higher-growth areas of the business.
AllianceBernstein’s Alexia Howard highlighted the growth discrepancy between legacy Heinz and Kraft brands post-2015 merger, suggesting a breakup could result in a faster-growing company with international focus. Stifel analysts see a spin-off as a way to unlock value in higher-margin businesses.

Read more at Yahoo Finance: Ill-fated 2015 merger comes to fore amid Kraft Heinz spin-off speculation