Kraft Heinz reveals a plan to split into two separately traded entities, turning back the clock on its 2015 megamerger steered by Warren Buffett.
Steve Cahillane, the former chief executive of Kellanova, will lead Kraft Heinz ahead of the breakup slated for next year. He is set to assume the CEO role on January 1 for the restructured company that will carry the Global Taste Elevation banner, housing high-growth brands such as Heinz, Philadelphia, and Kraft Mac & Cheese.
Cahillane previously steered Kellogg through its own division in 2023, separating its slower North American cereal business from its faster-growing snacking unit, which became Kellanova. He remained as Kellanova’s CEO until Mars’ $35.9 billion acquisition closed.
Current Kraft Heinz CEO Carlos Abrams-Rivera—who was initially chosen to steer the North American Grocery entity—will transition to an advisory role through March 6. Abrams-Rivera has led the company since 2024.
To manage the transition, Kraft Heinz’s board will search for a CEO to helm the portfolio of grocery staples, including Oscar Mayer and Kraft Singles.
As part of the restructure, John Cahill, who previously served as Kraft’s CEO during the Heinz merger a decade ago, will become chair of the board, succeeding Miguel Patricio.
The company projects the separation to occur in the second half of 2026. The breakup, announced in September after years of sluggish sales despite ongoing turnaround efforts, reverses much of the $46 billion Kraft Foods–Heinz merger that formed the conglomerate now known as Kraft Heinz.
Kraft Heinz shares edged higher in premarket trading, though the stock has fallen roughly 20% year-to-date.
Programming note: Cahillane is expected to discuss the transition on CNBC’s Squawk on the Street at 10:10 a.m. today.
