Kraft Heinz is another food conglomerate to succumb to changes in consumers habits. After hinting earlier this year that that the two mega brands would spilt, the corporation announced that it would become two publicly-listed companies.
According to a Reuters report, Kraft Heinz will divide into two separate businesses. The Global Taste Elevation Co. will focus on its core sauces, like Heinz, Philadelphia and Kraft Mac and Cheese. The other company, North American Grocery Co, will focus on grocery items like Oscar Mayer, Kraft Singles and Lunchables.
Why Is Kraft Heinz Splitting into Two Companies?
In July, the mega food brand hinted that a significant change in its corporation structure would be coming. According to reports, the company was urgently looking to spin off its grocery business. Earlier in the summer, the corporation evaluated various mergers and acquisitions to bolster the brand’s value.
Related: The Real Reason Why Your Favorite Foods Will Be More Expensive
According to Miguel Patricio, the Kraft Heinz executive chair, the spilt should position the company to better allocate funds and address changes in consumer habits. In a company statement, he 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.”
The spilt will not happen immediately. It is projected that the two entities will begin separate operations during the second half of 2026.
How are Consumers’ Changing Habits Impacting Food Brands?
From calling for the removal of synthetic dyes in food to seeking healthier, non-processed food alternatives, consumers choices are directly impacting food companies’ bottom lines. In June, Kraft Heinz announced it would remove synthetic dyes from its food products. Even if Kraft Mac and Cheese is the classic comfort food, people demand the ingredients in that blue box align with their preferences.
Organic ingredients, more protein and few preservatives have become the food trends taking over the grocery store shelf. While Kraft Heinz has tried to adapt to flavor trends and offered creative promotions to capture people’s attention, the core company needs to evolve to stay relevant. Splitting into two separate brands allows it to address consumers wants and position itself for success.
Related: Here’s Why More Americans Are Skipping Fast Food Breakfast
Food Brands Divide and Conquer to Keep Businesses Afloat.
Kraft Heinz is the latest megacompany to split into separate corporations. Previously, Kellogg split its core businesses into two brands. Kellanova focuses on snacks like the classic Cheez-It and Pringles. WK Kellogg Co maintained the brand’s iconic cereal offerings.
Mars purchased Kellanova in 2024. The snack brand has found success in college football partnerships and other pop culture collaborations.
Recently, Nutella announced it would purchase WK Kellogg Co. How the popular Ferrero brand influences classic cereals like Froot Loops and Frosted Flakes remains to be seen.
