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Is Kraft Heinz Offloading Some Brands?

Reports emerge that CPG giant may sell off parts of grocery business
Lynn Petrak, Progressive Grocer
Kraft Heinz HQ
Headquartered in Chicago, Kraft Heinz announced in May that it is looking at "strategic transactions" that can benefit shareholders.

It’s been a big 2025 so far for legacy CPGs, as iconic companies like WK Kellogg are going through an acquisition process and others, like Del Monte Foods, file for bankruptcy. The latest speculation is swirling around Kraft Heinz, which is reportedly considering spinning off a part of its grocery portfolio.

A story in the Wall Street Journal cited sources who claimed that Kraft Heinz will keep some of its signature brands, including Heinz ketchup and Grey Poupon mustard, while selling off others to a separate entity. The alleged deal could be worth $20 billion, according to the report.

[RELATED: Ferrero to Acquire Iconic WK Kellogg for $3.1B]

At this point, the chatter is not confirmed and the same sources told the WSJ that the breakup isn’t a done deal in terms of a decision.

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Kraft Heinz, which was formed in a 2015 merger between H.J. Heinz and Kraft Foods, has publicly shared that it is continually exploring “strategic transaction” to ways to deliver shareholder value. 

“At Kraft Heinz, our goal has always been to make high-quality, great-tasting food for all and to keep consumers at the forefront of all we do, enabling us to drive profitable long-term growth and value creation,” reported Kraft Heinz CEO Carlos Abrams-Rivera in a May news release. 

He continued, "Consistent with this goal, over the past several months we have been evaluating potential strategic transactions to unlock shareholder value. As we look to the future, we will continue to inspire and delight consumers with our iconic brands, fulfilling our mission.” 

Also in May, the company shared that Berkshire Hathaway will no longer have a seat on the board, emphasizing that the move was not related to any disagreement with the company or its board.

Financial analysts report that Kraft Heinz is valued at $31.33 billion. In April, the company reported a 6.4% year-over-year decrease in net sales and an 8.1% slide in operating income. The company will announce its second quarter fiscal results on July 30.

Although Kraft Heinz has not commented on the latest reports, the organization did announce on July 10 that it is selling its infant and specialty food business in Italy to NewPrinces S.p.A. That Italian company will also take over a Kraft Heinz production facility in Latina, Italy.

“This marks an important milestone in driving our strategy across Europe and the Pacific, enabling us to fuel investment and growth in our core areas, and enhance focus on our Accelerate platforms,” said Willem Brandt, president, Europe and Pacific developed markets, at Kraft Heinz. “It’s a great example of how we’re intentionally and proactively managing our portfolio to accelerate organic growth and drive sustainable, long-term value.”

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