Kraft Heinz split in short
- Kraft Heinz confirms strategic options considered
- Kraft brand likely to be separated
- Remaining business to focus on sauces and condiments
- Deal could close within weeks
Rumours of a potential Kraft Heinz split have been circulating for weeks now, following a report in the Wall Street Journal, which alleged the company was planning to spin off a huge portion of its business.
The food giant however has been cagey on the subject, saying only that it does not comment on “rumours or speculation”.
Until now.
CEO Carlos Abrams-Rivera appeared to confirm the multinational is considering plans to separate, during Kraft Heinz’s earnings call on Wednesday, saying the company is, “working with urgency on an evaluation of those strategic options”.
Abrams-Rivera went on to say that Kraft Heinz will, “operate with the same financial discipline” investors have come to expect, and “any actions will be consistent with that goal of unlocking that long-term shareholder value”.
But while the multinational has not announced a timeline on a potential split, sources close to Kraft Heinz say it could be in finalised in the coming weeks.
The spin off, worth an estimated $20bn (€17bn), would become one of the biggest grocery deals in history and leave the company comprised of sauces, condiments and spreads.
The original merger of the two American food giants, Kraft and Heinz, was completed in 2015, when Warren Buffett’s Berkshire Hathaway and Brazilian private equity firm 3G Capital combined the former Kraft Foods with H J Heinz. But problems began to emerge just four years later (2019), when Kraft Heinz reduced the value of Kraft and Oscar Mayer meat products by $15bn.