Kraft Heinz Embarks on a Corporate Breakup Amid Leadership Shift

The iconic food conglomerate Kraft Heinz is preparing for a fundamental transformation. As the company grapples with years of declining shareholder value, a new chief executive is set to take the helm with a singular mission: to execute a split of the corporation into two separate, publicly traded entities. This radical restructuring unfolds against a backdrop of significant share price pressure, with the stock having shed nearly 19% of its value since the start of the year.

Recent activity among major investors paints a picture of market division. Data from the past 48 hours reveals that while firms including Osaic Holdings and Cwm substantially increased their holdings, and Polianta Ltd. established a new position, Orion Portfolio Solutions moved to reduce its exposure. This divergence suggests a split in conviction, with some institutional players betting on value creation from the impending separation and others opting to sidestep the risks inherent in such a complex overhaul.

A New Captain for a New Course

Central to the current investment thesis is a confirmed change in leadership. Effective January 1, 2026, Steve Cahillane, the former CEO of Kellanova, will succeed Carlos Abrams-Rivera. Market attention is squarely focused on Cahillane’s mandate to strategically reposition the food giant.

The outlined plan calls for the division of Kraft Heinz into two distinct companies by the second half of 2026:
* Global Taste Elevation Co.: This entity will house high-margin, growth-oriented brands such as Heinz Ketchup and Philadelphia.
* North American Grocery Co.: This unit will focus on established staple food brands, including Oscar Mayer and Kraft Mac & Cheese.

Should investors sell immediately? Or is it worth buying Kraft Heinz?

This strategic pivot is being launched from a position of weakness, with the shares trading far below their historical peaks. Since its highs in 2017, the stock has lost approximately 75% of its value.

The Weight of Historical Baggage

The current corporate overhaul is also viewed through the lens of a major event in the investment world: the retirement of Warren Buffett from Berkshire Hathaway on December 31, 2025. Retrospectives on his six-decade tenure have explicitly cited the 2015 merger that created Kraft Heinz as a portfolio management misstep. Berkshire Hathaway removed the company from its list of subsidiaries in April 2025. This legacy of underperformance continues to cloud investor sentiment as Kraft Heinz attempts to arrest its downward trajectory through the planned breakup.

For shareholders, 2026 will be a pivotal year. Success for the new leadership under Steve Cahillane hinges on implementing this intricate separation without further operational disruptions, which could potentially enhance the valuation of the individual parts. Until then, however, the stock remains a restructuring story that must still work to rebuild market confidence.