Kraft Heinz will separate into two listed businesses in an effort to reignite growth after years of underperformance, dismantling the $45bn merger engineered by Berkshire Hathaway and 3G Capital in 2015, Reuters reports.

The sauces and spreads business will include flagship brands Heinz, Philadelphia, and Kraft Mac & Cheese, which reported $15.4bn in sales last year. The grocery and ready meals division will include Oscar Mayer and Lunchables, with $10.4bn in annual sales.

Current CEO Carlos Abrams-Rivera will lead the grocery unit, while Kraft Heinz will appoint a new chief executive for the sauces company. Executive Chair Miguel Patricio said the simplified structure would enable more effective capital allocation and allow both companies to scale more efficiently in their respective markets.

The tax-free spin-off is expected to close in the second half of 2026, pending shareholder and regulatory approvals.

The split mirrors a wider wave of corporate break-ups, with consumer groups facing pressure from private-label rivals and investors demanding clearer strategic focus.

Kraft Heinz shares were largely unchanged on the announcement and remain down 21% over the past twelve months.

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