Berkshire Hathaway exit from Kraft Heinz - summary
- Berkshire Hathaway reportedly plans full divestiture of its Kraft Heinz stake
- SEC filing enables potential sale of 325.4 million Kraft Heinz shares
- Divestment represents roughly twenty seven percent of the entire company
- Investor exit triggers significant selling pressure across Kraft Heinz stock
- Major banks have lowered price targets following increased market uncertainty
The Kraft Heinz Company looks set to lose its biggest investor.
In a major new development it’s reported holding company Berkshire Hathaway, of which Warren Buffett owns a controlling share, has filed paperwork with the SEC that clears the way for it to divest its entire stake in Kraft Heinz.
The move follows the announcement in September that Kraft Heinz is to split into two separate entities, and Greg Abel taking on the role of CEO at Berkshire Hathaway.
The regulatory filing pertains to the potential sale of up to 325 million common shares, representing approximately 27% of the company.
The exit from Kraft Heinz would free up a sizeable amount of capital for Berkshire Hathaway and reduce its exposure to a packaged foods business that has already led to a US$3.76bn (€3.13bn) write-down.
Kraft Heinz future
The exit of its largest and most reliable anchor investor leaves Kraft Heinz facing significant new selling pressure.
In the wake of the news, equity analysts at JP Morgan, Morgan Stanley, and UBS have all lowered their price targets for the stock.
Beyond the immediate market reaction, Berkshire Hathaway’s potential withdrawal marks a symbolic shift for the wider packaged food sector. For years, Kraft Heinz served as the flagship example of the aggressive cost‑cutting, consolidation‑driven strategy that reshaped Big Food in the 2010s. With Buffett stepping away, the industry is likely to read this as confirmation that the old playbook – scale at any cost, efficiency over innovation – is losing relevance in a market defined by shifting consumer priorities.
Rivals are already moving in a different direction, funnelling investment into premiumisation, health‑forward reformulation, and smaller, faster‑growing brands.
Kraft Heinz’s impending breakup into two entities only reinforces the idea that diversified conglomerate structures may no longer be optimal when agility and focus are at a premium.
Whether the divestiture, should it take place, frees Kraft Heinz to reinvent itself or leaves it more vulnerable remains to be seen. But what’s clear is that this moment represents more than a change in its shareholder base, it’s a turning point for an industry under pressure to evolve.
For food manufacturers across the board, the exit of one of Wall Street’s most iconic long‑term investors is a signal that the sector’s next chapter will demand not just scale, but strategic reinvention.
Kraft Heinz and Berkshire Hathaway have not yet responded to request for comment.
