Kraft Heinz Prepares for Major Corporate Split

Kraft Heinz Company is preparing for a significant corporate restructuring, with plans to separate its grocery products from its sauces and condiments businesses. According to sources cited by The Wall Street Journal on Friday, this split could be announced as early as next week, although the timing and specific details are still subject to change.

Reversal of 2015 Merger

This move would largely reverse the effects of the 2015 merger that was orchestrated by Warren Buffett and 3G Capital Partners LP. Under the proposed plan, the grocery unit is estimated to be valued at approximately $20 billion, while the sauces and condiments segment—which includes well-known brands like Heinz ketchup and Grey Poupon Dijon mustard—would continue to operate separately.

Leadership's Stance

Chief Executive Carlos Abrams-Rivera commented on the developments, stating, "Our board is working with urgency on our evaluation of those strategic options." This indicates the company's proactive approach in considering this major shift to enhance its business strategy and market positioning.