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Kraft Heinz Splits as Consumers Shun Processed Foods
11 Sep
Summary
- Kraft Heinz to split into two companies amid consumer shift away from processed foods
- "Make America Healthy Again" movement led by U.S. Health Secretary poses new threat
- Rao's Homemade brand gaining market share from Kraft Heinz's top products
In September 2025, Kraft Heinz announced it would split into two companies, a belated acknowledgment that the food giant had missed consumers' years-long shift away from processed foods. This trend has only accelerated under a new push from the federal government and states like California.
The rise of the "Make America Healthy Again" (MAHA) movement, led by U.S. Health Secretary Robert F. Kennedy Jr., poses a significant threat to Kraft Heinz. Kennedy blames artificial ingredients for chronic childhood diseases like diabetes and obesity, putting pressure on the company that makes products like Oscar Mayer hotdogs and Kraft Singles.
Meanwhile, Kraft Heinz's competition, including sauce and pasta brand Rao's Homemade, is adapting more quickly to consumer tastes. Rao's Homemade has been snapping up market share from Kraft Heinz's top products, such as the iconic Kraft mac & cheese.
Food industry experts say the prospects for Kraft Heinz after the split are still bleak, as the company struggles to inject "energy, excitement and clarity" into its brands. U.S. food companies have faced challenges in recent years as consumers demand more natural ingredients and lower prices, a trend that has hit Kraft Heinz particularly hard.
