Pittsburgh's Kraft Heinz Brand To Dissolve

PITTSBURGH, PA — Pittsburgh-based Kraft Heinz announced Tuesday that it will split into two independent companies.

The two companies, whose officials names will be determined at a later date, will be:

• Global Taste Elevation Company, which will consist of with three billion-dollar brands: Heinz, Philadelphia and Kraft Mac & Cheese.
• North American Grocery Company, which will also consist of three billion dollar brands: Oscar Mayer, Kraft Singles and Lunchables.

“KraftHeinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” Miguel Patricio, executive board chair for Kraft Heinz, said in a statement.

“By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value. "

The statement said the separation will provide both companies with more strategic and operational focus, enabling them to:

• Dedicate the right level of attention and resources to all areas of the business, allowing each respective brand portfolio to reach its full potential.
• Reduce operational complexity, driving further efficiencies and industry-leading margins.
• Customize capital allocation based on the strategic ambition of each company, accelerating performance and retaining financial flexibility.