Food giant Kraft Heinz is poised to divide its sprawling operations into two independent, publicly traded companies, a decade after its formation through a major merger.
The move, confirmed on Tuesday following reports last week, comes as the company seeks to overcome recent struggles. Known for household staples such as ketchup, baked beans, Heinz soups, and HP sauce in the UK, the firm stated the overhaul is “designed to maximise Kraft Heinz’s capabilities and brands while reducing complexity”.
One part of the business will operate as Global Taste Elevation Co, which will include the group’s global brands and many of its sauces and tinned products.
This will include brands such as Heinz, Philadelphia and Kraft Mac & Cheese, the company said.
It will then also create the North American Grocery Co, focusing on staples in the US and other parts of the region, where it has brands including Oscar Mayer, Kraft Singles and Lunchables.
Carlos Abrams-Rivera, Kraft Heinz chief executive, said: “This move will unleash the power of our brands and unlock the potential of our business.
“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.”
The deal is expected to complete in the second half of next year, dependent on regulatory approval.
