American packaged-food company formed from the 2015 merger of Kraft and Heinz, orchestrated by Warren Buffett and 3G Capital, a Brazilian private-equity firm. Its market value has fallen by three-fifths since the merger, to $32bn. The company expects operating profit to fall 5-10% in 2025 and said in September 2025 it would split, a decade after being sandwiched together—potentially spinning off its grocery business (ready meals, packaged meats) and keeping sauces and spreads.
Its new boss, who took over in January 2026, paused the separation in order first to get the business on surer footing.
Kraft Heinz's troubles reflect broader headwinds facing American packaged-food companies: cumulative strain on shoppers from inflation and a cooling jobs market; rising adoption of weight-loss drugs; smaller brands and retailers' in-house labels gaining share (the top 20 producers' market share slipped from 42% in 2018 to below 40%); big retailers forcing suppliers to absorb tariff costs; and Robert F. Kennedy Jr.'s crackdown on food dyes and chemicals in ultra-processed foods.
The groundhog is like most other prophets; it delivers its message and then disappears.