Kraft Heinz to separate into two publicly traded companies

One will include its sauces and boxed meals like Heinz ketchup and Kraft Mac & Cheese, Kraft Heinz said in a statement Tuesday. Bloomberg

Kraft Heinz Co. said it will split into two separate, publicly listed companies to streamline operations and unlock value.

One will include its sauces and boxed meals like Heinz ketchup and Kraft Mac & Cheese, Kraft Heinz said in a statement Tuesday. The unit currently generates $15.4 billion in sales. The second will sell grocery products like Oscar Mayer hotdogs and Lunchables. It currently generates $10.4 billion of sales. The two companies names will be determined at a different date.

The announcement unwinds a $46 billion merger a decade ago that united two iconic brands. That deal, orchestrated by 3G Capital and Warren Buffett’s Berkshire Hathaway Inc., forged an industry behemoth shortly before new forces began to reshape Americans’ shopping, including greater demand for healthier, less-processed foods, new weight-loss drugs and rising inflation that’s caused consumers to cut back.

Shares of Kraft Heinz are down about 21% in the 12 months through Friday’s close.

In May, Kraft Heinz said it was considering “potential strategic transactions,” but hadn’t said which brands it might spin off.