'Ketchup Is Breaking Up With Hot Dogs'

UPDATE Sep 2, 2025 11:20 AM CDT

Kraft Heinz's plan to split itself into two companies is confirmed. The move will undo the 2015 mega-merger between Kraft and Heinz, reports the New York Times. One of the remaining companies will focus on sauces and condiments—think Heinz ketchup and Philadelphia cream cheese—and the other on grocery staples such as Oscar Mayer brands and Kraft Lunchables. The Wall Street Journal has an easy shorthand: "After more than a decade together at Kraft Heinz, ketchup is breaking up with hot dogs." The move is expected to be completed by late next year.

Sep 2, 2025 8:59 AM CDT

Kraft Heinz is calling time on its decade-old megamerger, planning to split into two separate companies in a move that aims to sharpen their focus and shake up the packaged-food industry once again. One of the new companies will focus on sauces, spreads, and seasonings for a global market, featuring names like Heinz ketchup and Philadelphia cream cheese, reports the Wall Street Journal. The other, to be led by current CEO Carlos Abrams-Rivera, will handle North American grocery staples, including the Oscar Mayer, Maxwell House, and Lunchables brands, per NPR. The split aims to streamline operations, boost focus, and shed the complexity that executives say has weighed the company down.

The move comes amid a broader industry trend of corporate breakups, following splits at Kellogg and Keurig Dr Pepper. Kraft Heinz's decision is also motivated by falling demand for some legacy products and a recent financial slump—shares are down 21% over the last year and the company reported a nearly $8 billion net loss in the second quarter with a $9.3 billion non-cash impairment charge, per NPR. Executives argue that smaller, more specialized businesses can adapt better to changing consumer tastes and invest more strategically in their brands. However, analysts warn that untangling years of combined operations and shared technology partnerships could be challenging.