Kraft Heinz revealed plans to divide into two independently traded companies, effectively undoing its 2015 megamer merger steered by Warren Buffett. Tuesday’s announcement confirms that Steve Cahillane, formerly CEO of Kellanova, will steer the company before the split is completed next year.
Cahillane will assume the top role at the Oscar Mayer business on January 1. After the separation, he will serve as CEO of the newly named Global Taste Elevation, which will house high-growth brands such as Heinz, Philadelphia, and Kraft Mac & Cheese.
Cahillane previously piloted Kellogg through its 2023 breakup, separating its slower North American cereal operation from the faster-growing snacking arm that became Kellanova. He remained as Kellanova’s chief executive until Mars agreed to acquire the company for $35.9 billion.
Outgoing Kraft Heinz CEO Carlos Abrams-Rivera, who was initially slated to lead the North American Grocery entity, will instead act as an advisor through March 6. Abrams-Rivera has led Kraft Heinz since 2024.
The Kraft Heinz board will begin a search for a new chief executive to oversee the broader portfolio of grocery staples, including Oscar Mayer and Kraft Singles.
As part of the transition, John Cahill, previously Kraft’s CEO at the time of the Heinz merger about ten years ago, will take over as chair of the board, succeeding Miguel Patricio.
Kraft Heinz expects the separation to occur in the second half of 2026. The move, announced in September, follows years of sluggish sales despite earlier turnaround efforts and represents a reversal of the $46 billion merger that created one of the world’s largest food companies.
Shares edged higher in premarket trading, though the stock has declined roughly 20% year-to-date.
Programming note: Cahillane is set to discuss the plan on CNBC’s Squawk on the Street at 10:10 a.m. Tuesday.
