Home / Business and Economy / Kraft Heinz Considers Splitting into Grocery and Sauces/Spreads Units
Kraft Heinz Considers Splitting into Grocery and Sauces/Spreads Units
25 Jul
Summary
- BofA Securities maintains Underperform rating on Kraft Heinz
- Proposed split would see 55% of sales from grocery, 45% from sauces/spreads
- Kraft Heinz partners with NotCo to develop plant-based products
Kraft Heinz, the multinational food and beverage manufacturer, is exploring a potential split into two separate units - one focused on grocery products and the other on sauces and spreads. The proposed restructuring would see the grocery unit account for 55% of sales ($14 billion), while the Taste Elevation division would contribute the remaining 45% ($11 billion).
However, analysts at BofA Securities have maintained their Underperform rating and $29 price target for Kraft Heinz, despite the company's efforts to boost shareholder value. Key brands in the grocery unit would include Kraft, Oscar Mayer, and Lunchables, while the Taste Elevation arm would feature Heinz and Philadelphia.
In a separate development, Kraft Heinz has partnered with NotCo, a Chilean food tech company, to form a joint venture called The Kraft Heinz Not Company. The partnership aims to leverage AI technology to develop plant-based and alternative protein products, including exploring advancements in lab-grown meat innovation.
