Huge change for multibillion-dollar supermarket staples
Share this @internewscast.com

Kraft Heinz is splitting into two companies a decade after a merger of the brands created one of the biggest food manufacturers on the planet.

One of the entities, presently referred to as Global Taste Elevation Co, will feature brands like Heinz, Philadelphia cream cheese, and Kraft Mac & Cheese, as announced by Kraft Heinz on Tuesday.

The other, currently named North American Grocery Co, will encompass legacy brands such as Maxwell House, Oscar Mayer, Kraft Singles, and Lunchables. The final names of these two companies will be disclosed later.

A display of Heinz Ketchup on display in a market in Pittsburgh.(Supplied/Today)

In 2015, Buffett and 3G joined forces to merge Heinz with Kraft. This merger resulted in the creation of the world’s 5th largest food and beverage company, boasting annual revenue of $US28 billion. Both Buffett and 3G invested $US5 billion each towards a special dividend for Kraft shareholders.

Despite their efforts, the combined company encountered challenges, even with the implementation of layoffs affecting thousands of employees and other cost-reduction strategies. At the merger’s time, a significant number of consumers began moving away from the kinds of heavily processed packaged foods that Kraft offers.

Since experiencing a pandemic-induced surge in sales in 2020, the company’s net revenue has consistently declined each year. In April, Kraft Heinz revised its full-year sales and earnings forecasts downward, attributing this to diminished consumer spending in the US and the repercussions of US President Donald Trump’s tariffs.

Carlos Abrams-Rivera will continue as CEO of Kraft Heinz and will take on the CEO role at North American Grocery Co after the separation. The Kraft Heinz board is collaborating with an executive search firm to identify suitable CEO candidates for Global Taste Elevation Co.

The announcement follows the recent breakups of other big food companies. Late last month, Keurig Dr Pepper said it would buy the owner of Peet’s Coffee and then split itself in two, with one company selling coffee and the other selling cold beverages like Snapple, Dr Pepper, 7UP and energy drinks. Keurig and Dr Pepper merged in 2018.

In 2023, Kellogg Co also split into two companies. Mars bought one of the companies, dubbed Kellanova, which owned snack brands like Pringles. Italian confectioner Ferrero announced in July that it planned to buy WK Kellogg, the cereal company.

Kraft Heinz shares fell 3 per cent on Tuesday.

Share this @internewscast.com
You May Also Like

All You Need to Know About the 2025 NRL and NRLW Grand Finals

It’s set to be a big weekend for rugby league fans, with…
Brisbane temperature

Record-breaking October heat expected for Australian capital

Queensland’s capital is set to swelter under its hottest October day in…
'I have been abducted': Greta Thunberg releases video plea as Israel intercepts aid flotilla

“Greta Thunberg Issues Urgent Video Message as Israel Halts Aid Flotilla”

A video recorded in advance by Greta Thunberg, the Swedish climate activist,…
BRISBANE, AUSTRALIA - JUNE 21: during game two of the State of Origin series between the Queensland Maroons and the New South Wales Blues at Suncorp Stadium on June 21, 2023 in Brisbane, Australia. (Photo by Chris Hyde/Getty Images)

How Brisbane Might Become Australia’s Next Sports Hub

For decades, Melbourne has been the centre of sport in Australia. Melbourne…

Organisers Pledge to Challenge Police Attempt to Halt Pro-Palestinian Protest at Opera House

The organisers of a pro-Palestinian rally in Sydney are determined to challenge…

Tragic Helicopter Crash in Sydney Leaves One Man Dead and Teenager Seriously Injured

The incident took place in Bankstown, located in Sydney’s south-west, around 1:30…
Missing four-year-old Gus

Police Reduce Search Efforts for Gus, Missing for Six Days

Police have scaled back their search for four-year-old Gus, who went missing…

NIMBYs, YIMBYs, and the Emerging BIMBYs: New Players in Australia’s Housing Debate

Emily Lockwood, belonging to Sydney YIMBY, which stands for ‘Yes In My…
NSW Police Assistant Commissioner Peter McKenna

Police Seek Court Order to Stop Protest at Opera House

NSW Police have launched legal action to oppose about 10,000 pro-Palestine protesters…
'Won't be silenced': Accused killer cop makes extraordinary court outburst

Accused Officer Allegedly Shouts in Court: ‘I Won’t Be Silenced’

A police officer, accused of killing a TV presenter and his partner,…

Unexpected Twist: Lunch Prep Takes a Surprising Turn as I Start Feeling Ill

Insight speaks with tech enthusiasts and abstainers, and those experiencing tech addictions…

Israel Announces Detention of Over 400 from Gaza Relief Flotilla, Plans Deportations

Israeli Prime Minister Benjamin Netanyahu has praised Israeli naval forces for intercepting…