(NewsNation) — Kraft Heinz, one of the world’s largest food companies, has announced it will split into two businesses.
One of the companies will offer shelf-stable meals and feature brands such as Heinz, Philadelphia Cream Cheese and Kraft Mac & Cheese. The other will include brands such as Oscar Mayer, Kraft Singles and Lunchables.
In May, Kraft Heinz said it was conducting a strategic review of the company, signaling a potential split.
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In 2015, the company sought to leverage its massive scale, but shifting tastes complicated those plans, as households sought to introduce healthier options at the table. Kraft Heinz and other food producers have shifted offerings to follow that trend.
“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 has struggled financially, despite layoffs and other cost-cutting measures. Its net revenue has fallen annually since 2020, following a pandemic-related bump in sales.
The split comes a decade after the brands merged, creating one of the largest food companies in the world.
