Kraft Heinz to Split Into Two Separate Companies in 2026

Kraft Heinz announced Tuesday it will divide into two independent companies sometime next year, undoing a 2015 merger that failed to deliver expected results.

The food giant will separate its business along product lines. One company will manage condiments, spreads, and shelf-stable meals, including the Heinz ketchup, Philadelphia cream cheese, and Kraft Mac and Cheese brands. The second company will oversee packaged grocery products such as Oscar Mayer meats, Kraft Singles cheese, and Lunchables meal kits.

The split represents a significant reversal of the $49 billion merger between Kraft Foods and H.J. Heinz Company nearly a decade ago. That deal, backed by Warren Buffett's Berkshire Hathaway and 3G Capital, was intended to create cost savings and operational efficiencies but struggled with declining sales and changing consumer preferences.

Both new companies remain unnamed. The separation will allow each entity to focus on distinct market segments and develop specialized strategies for their respective product portfolios.