Kraft Heinz to Split Business

The Kraft Heinz Co. is restructuring, splitting into two separate companies. 

The two businesses — Global Taste Elevation Co. and North American Grocery Co. (formal names to be announced at a later date) — will focus on shelf-stable meals and North American staples, respectively. 

The company stated that the split will enable Kraft Heinz to maximize its capabilities and brands, reducing complexity and optimizing resource allocation toward distinct strategic priorities. 

“The complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” said Miguel Patricio, executive chair of the board for Kraft Heinz, in a statement. 

“By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value.”

[Also: Kraft Heinz said Agile@Scale and pod strategy are yielding optimizations]