PITTSBURGH, Pa. (WHTM) — The Kraft Heinz Company just announced plans to separate into two independent companies.

Earlier today, The Kraft Heinz Company announced that its Board of Directors unanimously approved a plan to separate the company into two independent, publicly traded companies through a tax-free spin-off.

According to Kraft Heinz, this separation is designed to maximize Kraft Heinz’s capabilities and brands while reducing complexity.

This will allow both companies to more effectively deploy resources toward their distinct strategic priorities, enabling stronger performance.

“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,” Miguel Patricio, Executive Chair of the Board for Kraft Heinz, said. “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. I look forward to working closely with Carlos and the Kraft Heinz team in the months ahead to prepare the organization for the separation.”

Kraft Heinz says the two resulting companies (whose names will be determined at a later date), will be:

• “Global Taste Elevation Co.” – This company will include a roster of iconic brands and local jewels, with three billion-dollar brands – Heinz, Philadelphia, and Kraft Mac & Cheese.
• “North American Grocery Co.” – This company, which will be led by Carlos Abrams-Rivera, will include a portfolio of beloved brands, including three billion-dollar brands – Oscar Mayer, Kraft Singlesand Lunchables.

This separation announcement comes after Kraft Heinz announced in May 2025 that they had been evaluating potential strategic transactions to unlock shareholder value.

“This move will unleash the power of our brands and unlock the potential of our business,” Carlos Abrams-Rivera, Kraft Heinz CEO, said. “This next step in our transformation is only possible because of the commitment of our 36,000 talented employees who deliver quality and value for consumers every day. We will continue to operate as ‘one Kraft Heinz’ throughout the separation process.”

Following an evaluation of potential strategic transactions, Kraft Heinz determined that separating into two standalone companies offered the most compelling opportunity to unlock long-term value for all its shareholders.

“The Board’s unanimous decision to separate into two independent companies came after careful consideration and a comprehensive evaluation of our options. We strongly believe that increased focus will translate into better performance and value creation for shareholders,” Jack Pope, Lead Director of the Kraft Heinz Board, said.

Moving forward, Carlos Abrams-Rivera will continue to serve as CEO of Kraft Heinz and will become CEO of “North American Grocery Co.” upon completion of the separation.

Experts with the company expect the transaction to close in the second half of 2026.