Why did Kraft Heinz scrap its breakup plan?

Kraft Heinz abandoned its breakup plan because it believes its problems are fixable and within its control, and wants to focus 100% of its efforts on returning the company to growth.

What was Kraft Heinz's original plan?

Kraft Heinz had announced in September plans to split into two companies, one focused on groceries and another on sauces and spreads.

What is Kraft Heinz's new strategy?

The new strategy involves dedicating all focus, time, people, and investment to achieving company growth, rather than proceeding with the separation.

Home / Business and Economy / Kraft Heinz Abandons Split Plan

Kraft Heinz Abandons Split Plan

12 Feb

•

Summary

Kraft Heinz has abandoned its previously announced breakup plan.
The company cited 'fixable' growth problems within its control.
Focus will now shift entirely to achieving company growth.

Kraft Heinz has announced a significant change of course, abandoning its previously planned corporate split. The food giant had revealed in September its intention to divide into two distinct firms, one for groceries and another for sauces and spreads. This decision followed a decade of slower-than-expected growth since the merger of Kraft and Heinz.

Chief executive Steve Cahillane stated that the company aims to direct 100 per cent of its focus, time, people, and investment towards restoring growth. This strategic shift means shelving the complex separation process to concentrate efforts on overcoming current challenges, which are described as 'fixable and within our control.'

The company's portfolio includes popular brands such as Heinz baked beans and Capri Sun. The decision to halt the breakup signals a commitment to internal improvements rather than structural change. This move will allow the company to fully address its growth objectives without the distraction of a major corporate reorganization.