Kraft Heinz announced plans to split into two separately traded companies, reversing its 2015 megamerger, which was orchestrated by billionaire investor Warren Buffett.
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Kraft Heinz on Tuesday announced that former Kellanova CEO Steve Cahillane will lead the company ahead of its planned split next year.
Cahillane will join the Oscar Mayer owner as chief executive on Jan. 1. After Kraft Heinz divides into two publicly traded companies, he will serve as CEO of the business it is calling Global Taste Elevation, which will include high-growth brands like Heinz, Philadelphia and Kraft Mac & Cheese.
Cahillane previously led Kellogg through its own breakup in 2023. The company split its sluggish North American cereal business from its high-growth snacking unit, which was then renamed Kellanova. Cahillane stayed on as chief executive of Kellanova until Mars acquired the company for $35.9 billion.
Outgoing Kraft Heinz CEO Carlos Abrams-Rivera was originally tapped to lead the other company known as North American Grocery. However, he will now serve as an advisor through March 6. Abrams-Rivera has been chief executive of the food giant since 2024.
The Kraft Heinz board will initiate a search for a chief executive to lead the portfolio of grocery staples, which includes brands like Oscar Mayer and Kraft Singles.
As part of the transition, John Cahill, who served as CEO of Kraft during its merger with Heinz a decade ago, will succeed Miguel Patricio as chair of the board.
Kraft Heinz is projecting that the separation will happen in the second half of 2026. The company announced the breakup plans in September, following years of sluggish sales despite turnaround efforts. The split reverses much of the blockbuster $46 billion merger from a decade ago that created one of the biggest food companies in the world.
Kraft Heinz shares were slightly higher in premarket trading. The stock has fallen about 20% this year.
Programming note: Steve Cahillane will speak to CNBC’s “Squawk on the Street” at 10:10 a.m. on Tuesday.
