Kraft Heinz to split into two companies by 2026

Kraft Heinz is splitting into two companies

To make candies pop, sports drinks appear refreshing and chips look extra spicy. Many companies add synthetic dyes in our food. Some common examples include red number 40, yellow number 5, and blue number 2. I was just *** note. Nobody wants to eat petroleum. The FDA announced *** phasing out of petroleum-based synthetic food dyes from the nation's food supply. There's *** lot of controversy surrounding them and mainly because people are concerned about their potential toxicity. Maya Feller is *** nutritionist based in New York. She says artificial dyes are widespread, so we hit the grocery store to find out for ourselves. So this is our grocery store haul with some foods with artificial dyes in them and some of them you might have been able to guess, for example, sports drinks like this Blue Gatorade has Blue one in it. There are other things that you might not have guessed. This is smoked salmon along with fruit loops. Both of these have yellow 5, yellow 6, red 40, and blue 1. Kraft Heinz, Kellogg, PepsiCo and. General Mills are among some of the companies saying they're phasing out artificial dyes. So are these dyes safe? One study showed red number 3 caused cancer in male lab rats when exposed to high levels of the dye. It was previously banned from cosmetics in 1990. However, the FDA said humans aren't exposed to such high levels, and red number 3 is safe at the levels we currently consume them. And what the research says is that there's the potential for, right? Not that you're gonna have this food dye and you will have cancer. Some studies also suggest *** link between hyperactivity and children, though there is no conclusive evidence that artificial dyes cause ADHD. Feller says artificial dyes are typically in food that already contain *** high amount of added sugars, fats, and salts. Let's give folks options. Options should be lower in added sugar, lower in the saturated and synthetic fats and lower in the added salts. Ditching artificial dyes doesn't mean your food has to look lackluster. I mean. It smells like *** summer day. Taylor Ann Spencer works for *** Hearst Partners at Delish. She and her team have tested recipes using natural coloring options like freeze dried strawberries and cupcake frosting. They're *** great way to make anything pretty in pink. For savory dishes like this vegan queso, turmeric can give *** bright yellow hue. *** little goes along. Low here. Finally, and hear us out on this one purple cabbage. You extract the color by soaking it in boiling water. Depending on the pH of the drink, you'll get *** purple, blue, or pink color. And you can already see it's instantly pinky. And for any skeptics out there, our producers Lauren and Allie took *** taste test. Wait, I really can't tell. In May, the FDA approved three food colors from natural sources butterfly pea extract, which is derived from *** plant, Galdea extract blue, which is derived from algae, and calcium phosphate, which is *** mineral that can be used for white coloring. Reporting in Washington, I'm Amy Lou.

Updated: 6:29 AM CDT Sep 2, 2025

Editorial Standards ⓘ

Kraft Heinz is splitting into two companies

Updated: 6:29 AM CDT Sep 2, 2025

Editorial Standards ⓘ

Kraft Heinz, the gigantic packaged foods business, is splitting into two separate publicly traded businesses, the company announced Tuesday, the latest mega food business to unwind its strategy to offer everything for everyone.The new companies haven’t yet been named. One will focus on faster-growing businesses, such as sauces, spreads and shelf-stable meals. Those brands include Heinz, Philadelphia and Kraft Mac & Cheese. The other company will focus on the struggling grocery items and food away from home businesses, including the Oscar Mayer, Kraft Singles and Lunchables brands.“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” said Miguel Patricio, the Kraft Heinz executive chair, in a statement. “By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value.”Kraft Heinz expects the new companies will start operating separately in the second half of 2026.The split will reverse a massive but largely unsuccessful 2015 merger arranged by Warren Buffett’s Berkshire Hathaway and the investment firm 3G Capital, Heinz and Kraft’s owners at the time. The merger brought dozens of iconic packaged food brands under one umbrella, creating the third-largest food company in North America.The combined company quickly went to work reducing expenses to boost profits. But after a few years, the company started to lose value fast. Kraft Heinz’s sales dropped 1.9% in the most recent quarter, the seventh-straight quarter of decline. Shares of (KHC) have plunged more than 68% since the merger was completed in 2015.Kraft-Heinz, like all big food companies, is grappling with inflation-weary buyers cutting back spending or switching to generic labels and the rise of GLP-1 drugs hurting demand for snack food.There is also pressure from U.S. Department of Health and Human Services Secretary Robert F. Kennedy Jr. to remove artificial flavors and other additives. Kraft Heinz said in June it would remove all artificial colors from its brands.Although the entire packaged food industry’s sales have sharply declined since the pandemic, “what’s been notable about Kraft in particular has been that it’s suffered in just about all of its categories,” said Bank of America analyst Peter Galbo.That’s because Kraft Heinz failed to keep up with consumer tastes. Many of its brands, such as Kraft Mac & Cheese, Lunchables and Velveeta, have fallen out of favor with customers seeking healthier or organic options as opposed to processed cheese and lunch meat.“The legacy of Kraft Heinz when 3G and Berkshire Hathaway put the company together was this synergy story, that they were going to rip out a bunch of costs,” Galbo told CNN. “(But) the bigger question for Kraft over time has always been, did they really invest enough money in the business?”Warren Buffett acknowledged in 2019 that Berkshire-Hathaway had ※��貹�� for Kraft” after the company took a $15 billion write-down in the value of both its Kraft and Oscar Meyer brands. By the end of 2023, 3G had quietly sold its entire stake in the company.In May, Kraft Heinz said it was evaluating strategic changes and potential transactions after two directors representing Berkshire Hathaway stepped down from its board, meaning the company would no longer hold any seats. Kraft Heinz has also sold off Planters and its US natural cheese business in recent years to simplify its business.Kraft Heinz CEO Carlos Abrams-Rivera said during its most recent earnings call that the company was starting to see improvements in North America due to “the fact that we have now invested…back in our products,” including better marketing and promotions.Now, with the breakup, analysts say Kraft Heinz may be trying to replicate the success of another packaged food giant – Kellogg.In 2023, Kellogg split off its more popular brands like Pringles and Cheez-It into a new company, Kellanova, while its cereal business remained under WK Kellogg Co.Nutella maker Ferrero Group bought cereal giant WK Kellogg Co, the owner of Froot Loops and Frosted Flakes, earlier this month in a $3.1 billion deal. Mars announced a nearly $30 billion deal for Kellanova last year.

The new companies haven’t yet been named. One will focus on faster-growing businesses, such as sauces, spreads and shelf-stable meals. Those brands include Heinz, Philadelphia and Kraft Mac & Cheese. The other company will focus on the struggling grocery items and food away from home businesses, including the Oscar Mayer, Kraft Singles and Lunchables brands.

“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” said Miguel Patricio, the Kraft Heinz executive chair, in a statement. “By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value.”

Kraft Heinz expects the new companies will start operating separately in the second half of 2026.

The split will reverse a massive but largely unsuccessful arranged by Warren Buffett’s Berkshire Hathaway and the investment firm 3G Capital, Heinz and Kraft’s owners at the time. The merger brought dozens of iconic packaged food brands under one umbrella, creating the third-largest food company in North America.

The combined company quickly went to work reducing expenses to boost profits. But after a few years, the company started to lose value fast. Kraft Heinz’s sales dropped 1.9% in the most recent quarter, the seventh-straight quarter of decline. Shares of () have plunged more than 68% since the merger was completed in 2015.

Kraft-Heinz, like all big food companies, is grappling with inflation-weary buyers cutting back spending or switching to generic labels and the rise of GLP-1 drugs hurting demand for snack food.

There is also pressure from U.S. Department of Health and Human Services Secretary Robert F. Kennedy Jr. to remove artificial flavors and other additives. Kraft Heinz said in June it would remove all artificial colors from its brands.

Although the entire packaged food industry’s sales have sharply declined since the pandemic, “what’s been notable about Kraft in particular has been that it’s suffered in just about all of its categories,” said Bank of America analyst Peter Galbo.

That’s because Kraft Heinz failed to keep up with consumer tastes. Many of its brands, such as Kraft Mac & Cheese, Lunchables and Velveeta, have fallen out of favor with customers seeking healthier or organic options as opposed to processed cheese and lunch meat.

“The legacy of Kraft Heinz when 3G and Berkshire Hathaway put the company together was this synergy story, that they were going to rip out a bunch of costs,” Galbo told CNN. “(But) the bigger question for Kraft over time has always been, did they really invest enough money in the business?”

Warren Buffett acknowledged in 2019 that Berkshire-Hathaway had for Kraft” after the company took a $15 billion write-down in the value of both its Kraft and Oscar Meyer brands. By the end of 2023, 3G had quietly its entire stake in the company.

In May, Kraft Heinz said it was evaluating strategic changes and potential transactions after two directors representing Berkshire Hathaway stepped down from its board, meaning the company would no longer hold any seats. Kraft Heinz has also sold off Planters and its US natural cheese business in recent years to simplify its business.

Kraft Heinz CEO Carlos Abrams-Rivera said during its most recent earnings call that the company was starting to see improvements in North America due to “the fact that we have now invested…back in our products,” including better marketing and promotions.

Now, with the breakup, analysts say Kraft Heinz may be trying to replicate the success of another packaged food giant – Kellogg.

In 2023, Kellogg split off its more popular brands like Pringles and Cheez-It into a new company, Kellanova, while its cereal business remained under WK Kellogg Co.

Nutella maker Ferrero Group bought cereal giant WK Kellogg Co, the owner of Froot Loops and Frosted Flakes, earlier this month in a $3.1 billion deal. Mars announced a nearly $30 billion deal for Kellanova last year.

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