Kraft Heinz, a company 10 years in the making, is splitting up, marking one of Warren Buffett’s few missteps. The merger with Kraft was a departure from Buffett’s playbook, leading to layoffs, management changes, and asset sales after aggressive cost controls impaired innovation.

Buffett, set to retire after 55 years, loves famous brands with loyal customers. Kraft Heinz fit the bill, but the partnership with 3G Capital resulted in challenges. After two massive writedowns, a federal probe, and declining revenue, Kraft Heinz is splitting into two businesses.

Buffett admitted to overpaying for Kraft Heinz, with the company’s stock plummeting 70% from its peak. Berkshire, the largest shareholder, may consider a sale. Splitting up Kraft and Heinz, while generating “dis-synergies,” may not solve the company’s key issues, according to experts.

The merger between Heinz and Kraft, once considered a home run for Buffett, is now seen as a rare misstep. Shifting consumer preferences, weight-loss drugs, and inflation have posed challenges. While Buffett’s errors are rare, he has acknowledged them in the past, including his most gruesome mistake with Dexter Shoe.

Read more at Yahoo Finance: Kraft Heinz is breaking up. Merging the food giants was a ‘rare’ misfire by Warren Buffett.