Kraft Heinz halts split, new CEO says problems are ‘fixable’

Feb 11 (Reuters) – Kraft Heinz has paused ongoing work to split the company in half, it said on Wednesday, with many of its challenges “fixable and within our control”, according to new CEO Steve Cahillane.

Shares of Kraft Heinz were down about 5% in premarket trading.

It first announced plans to split into two companies – one focused on groceries and the other on sauces and spreads – in September, after never achieving the kind of growth expected when Kraft and Heinz were merged a decade ago.

“My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan. As a result, we believe it is prudent to pause work related to the separation and we will no longer incur related dissynergies this year,” Cahillane, who took charge in January, said.

The company had expected to close the spinoff at the end of 2026 and brought on industry veteran and former Kellogg boss Cahillane to guide it through the split.

Kraft Heinz, like other packaged food companies, has been struggling with weak demand for its pricier condiments and pantry staples as consumers look for cheaper options.

The company forecast 2026 organic net sales to fall between 1.5% and 3.5%, and said the forecast included an impact of about 100 basis points from pressures related to the delay of food stamp benefits in the U.S.

It said it would focus on marketing and research with a $600 million investment to drive recovery in its U.S. business.

(Reporting by Angela Christy in Bengaluru; Editing by Pooja Desai)