Kraft Heinz is planning to split into two separate companies a decade after its merger, reported The New York Times.
“One of the companies, currently called Global Taste Elevation Co., will include shelf stable meals and include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese, Kraft Heinz said Tuesday. The other, currently called North American Grocery Co., will include brands such as Oscar Mayer, Kraft Singles and Lunchables. The official names of the two companies will be released later,” wrote the Associated Press.
Kraft Heinz said in May that it was conducting a strategic review of the company, signaling a potential split.
“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” Executive Chair Miguel Patricio said in a statement.
The company said in July that it expects its costs to rise between 5% and 7% this year, but that it is only passing a portion of that on to consumers.
Kraft and Heinz merged in 2015, a deal arranged by Warren Buffett and Brazilian private-equity firm 3G Capital Partners, wrote The Wall Street Journal.