NATIONAL NEWS – Kraft Heinz considers $20B brand spin-off to reverse post-merger decline

Kraft Heinz is exploring a spin-off of several legacy grocery brands, including Velveeta and Oscar Mayer, in a move that could reverse the effects of its troubled 2015 merger. The proposed separation would divide the company’s fast- and slow-growing segments, potentially valuing the spin-off at up to $20 billion, making it the largest consumer goods deal of 2025 to date, according to sources confirming a Wall Street Journal report. Shares in Kraft Heinz have lost nearly two-thirds of their value since the $45 billion merger between Kraft and H.J. Heinz, which was backed by Berkshire Hathaway and aimed at global expansion and cost reduction.

The company’s condiments division, led by Heinz ketchup and Philadelphia cream cheese, generated $11.4 billion in 2024 sales and is expected to command a higher valuation if separated. Meanwhile, the slower-growing Kraft-branded portfolio brought in $14.5 billion but faces growing pressure from low-cost private-label competitors and public health campaigns like MAHA. Analysts note the plan’s success hinges on potential acquisitions following the split, with possible buyers for the condiments unit including McCormick, Unilever, and Nestlé. Kraft Heinz has not confirmed the plan publicly, but it previously stated it was evaluating strategic options after Berkshire Hathaway exited its board.