The Kraft Heinz Company has announced that its Board of Directors has unanimously approved a plan to separate the business into two publicly traded companies through a tax-free spin-off.
As part of the move, Kraft Heinz has created Global Taste Elevation, which has reported $15.4 billion in 2024 net sales and $4.0 billion in adjusted EBITDA, and North American Grocery, which has reported $10.4 billion in 2024 net sales and $2.3 billion in adjusted EBITDA.
The decision has followed a strategic review initiated in May 2025. The Board has said the split will allow both companies to sharpen operational focus, simplify capital allocation, and drive efficiencies. A Separation Committee, chaired by John Cahill, has been formed to oversee the process.
Carlos Abrams-Rivera, currently CEO of Kraft Heinz, has been set to lead North American Grocery after the transaction closes. The company has said it is searching for a CEO to head Global Taste Elevation. Miguel Patricio, former CEO and current Chair of the Board, has been appointed as Executive Chair to guide the transition.
The separation is expected to be completed in the second half of 2026, subject to regulatory approvals and customary conditions. Kraft Heinz has said the transaction will be structured to be tax-free for shareholders.
“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively,” said Miguel Patricio, Executive Chair of the Board. “By separating into two companies, we can unlock the potential of each brand and drive better performance.”
Carlos Abrams-Rivera, Kraft Heinz CEO, said, “This move will unleash the power of our brands and unlock the potential of our business. We will continue to operate as ‘one Kraft Heinz’ throughout the separation process.”
Jack Pope, Lead Director of the Board, said, “The Board’s unanimous decision has come after careful consideration. We strongly believe that increased focus will translate into better performance and value creation for shareholders.”
