Kraft Heinz is putting its long-discussed breakup on hold, pausing work on a plan to split the food giant into two separately traded companies as its new chief executive argues the company’s problems can be solved without a separation.
CEO Steve Cahillane, who joined Kraft Heinz in January, said Wednesday that many of the company’s challenges are “fixable and within our control,” and that management needs to focus fully on restoring profitable growth.
The company said it will no longer incur separation-related “dis-synergies” this year and instead will direct resources toward strengthening its core business.
Kraft Heinz also announced plans to invest $600 million in its U.S. operations, with spending aimed at marketing, sales, research and development, product improvements and selective pricing moves. The investment is designed to fuel a turnaround for a company that has struggled for years with slipping sales and underinvestment in its brands.
The breakup plan, first announced in September 2025, would have reversed much of the $46 billion merger that created Kraft Heinz in 2015 — a deal backed by billionaire investor Warren Buffett. While the merger was initially celebrated, the company later faced slowing demand, weakened performance in the U.S. market and major write-downs of iconic brands such as Oscar Mayer and Maxwell House.
Buffett had expressed disappointment with the decision to split, and Berkshire Hathaway, now led by CEO Greg Abel, has taken steps toward unwinding its 28% stake.
Abel said Berkshire supports Cahillane’s decision to pause the separation so management can focus on competing more effectively.
Wall Street reaction was mixed. Piper Sandler analyst Michael Lavery said Cahillane has already reshaped Kraft Heinz’s strategy more dramatically than expected in just weeks on the job, though he cautioned the turnaround remains a “show me” story.
TD Cowen analyst Robert Moskow warned investors may view the delay negatively, suggesting the businesses may not yet be strong enough to operate independently.
Shares of Kraft Heinz fell as much as 5% in early trading before rebounding to trade nearly flat.
Source: CNBC