Kraft Heinz split 2026 - Key takeaways
- Kraft Heinz will divide into two companies by Autumn 2026
- Global Taste Elevation Co will include Heinz and Philadelphia brands
- North American Grocery Co will house Kraft Singles and Oscar Mayer
- Split aims to improve agility and unlock shareholder value faster
- Risks include supply chain disruption and potential brand sell-offs
Last week, The Kraft Heinz Company confirmed that it’s to split into two separate entities.
The news came as little surprise to the industry, as rumours of the break-up had been circulating for months, and Kraft Heinz had failed to deny them.
But now, it is officially go time.
The food giant will split into two focused companies - the Global Taste Elevation Co, home to big-name brands including Heinz and Philadelphia, and the North American Grocery Co, housing brands such as Oscar Mayer and Kraft Singles.
Oh, and if you’re not sold on the names don’t worry, Kraft Heinz has said the actual names for the new businesses will be revealed at a later date.
So, what happens now? What does divorce for one of the world’s largest food companies look like?
What’s next for Kraft Heinz?
“The Kraft Heinz portfolio has grown to 56 categories – a somewhat unsustainable and unwieldy size to manage effectively,” says Issy Perez, managing partner at consultancy firm Boyden, and former general manager for Central America at Kraft Foods. “This split simplifies operations.”
Though the move is not without its hazards.
“Company splits of any size are complex and can disrupt operations, culture and brand equity,” says Perez.
What’s more, it can take months or even years to fully complete the process, particularly for a company like Kraft Heinz, with its historically centralised structure.
The separation, says Perez, could disrupt key business functions, including supply chains. This would lead to inefficiencies and increased operating costs at a time when many multinational organisations are facing increased challenges due to climate change, tariffs and geopolitical tensions.
“The critical component here is finding and retaining the right talent to lead both organisations through a long and oftentimes stressful change,” says Perez.
Though in reality Kraft Heinz doesn’t have that long to navigate the change. The split is scheduled for completion in Autumn 2026 - just 12 months from now - so its leaders need to be ready to manage rapid change and build trust amongst employees.
It’s been done before
This is not the first time a major food manufacturer has split, and it won’t be the last.
Not so long ago, it was Kellogg’s decision to divide that was dominating the headlines, and this could well serve as a guide to Kraft Heinz as they follow suit.
“Following the Kellogg split, both Kellanova and WK Kellogg Co experienced initial market turbulence,” says Perez. “But ultimately, they were able to unlock some strategic flexibility. We saw this with the acquisition of WK Kellogg CO by Ferrero earlier this year.”
Kraft Heinz, says Perez, could follow a similar pattern. Though they’d benefit from keeping a sharper focus in the immediate aftermath of the separation.
In the meantime, the financial world has reacted well to the news, with Morgan Stanley upgrading the company’s stock, following Tuesday’s announcement.
However, Perez cautions against too much optimism, as the new companies must navigate some big risks before they can confidently say the worst is behind them.
“These new brands now have the means to become more agile and adapt to threats such as private label, but whether they’ll actually become agile and competitive remains to be seen,” he adds.
Will the new companies be sold?
It’s entirely possible that once the Kraft Heinz demerger has taken place, each new business will decide to merge with other multinationals.
“The split unlocks strategic options for both brands,” agrees Perez. “We saw this with both companies after the Kellogg’s split – Kellanova’s focus on snacks made it an attractive acquisition target for Mars, and WK Kellogg Co was recently acquired by Italian confectionery brand Ferrero."
By narrowing focus and becoming more competitive, strategic options often become much more broad for CPGs.
Added to this, we could soon witness more sell offs, as the multinational has an established history of offloading different parts of the business. Plus the split signals that there’s an operational focus on better, more strategic brand alignment.
“It wouldn’t be surprising to see these new entities sell off some of the slower-growth brands that don’t align with their respective new categorical focuses or current market demand,” says Perez. “For example, North America Grocery Co could soon sell off Jell-O, which has long faced category decline, or even Velveeta, which is an iconic brand but declining in relevance as consumers become more health-conscious.”
Customer opinion
On top of all the legal changes, name changes, structural changes and financial risks, is the most important aspect of all - customer opinion.
Companies like Kraft Heinz rely heavily on brand loyalty, and there’s a very real risk this will be challenged when names are changed and packaging redesigned.
“They’ll need to carefully navigate the consumer confusion and loss of brand equity that comes with a global brand split,” says Perez.
A new chapter begins
As Kraft Heinz prepares to turn the page on its next chapter, the industry will be watching closely. The split marks a significant shift not just for the company, but for the broader packaged food sector, where agility, focus, and consumer relevance are increasingly driving strategic decisions.
For now, all eyes are on Autumn 2026. The countdown has begun.
