Kraft Heinz is reportedly considering a major corporate restructure to separate its grocery division from its more profitable FMCG sectors, such as sauces. This strategic move aims to streamline operations and focus investments on higher-margin products. The company, valued at approximately $32 billion, is grappling with evolving consumer preferences, particularly the growing demand for healthier food options, while facing financial pressures from inflation and shifting shopping habits.
In an effort to adapt to these market dynamics, Kraft Heinz introduced a zero-salt-and-sugar ketchup. However, despite such innovations, the company is experiencing declining sales and stiffening competition. Recent financial results reflect this trend, with two consecutive years of revenue decline and a revised future outlook.
Kraft Heinz’s ongoing restructuring efforts include the divestment of its Italian baby food business, which was sold to New Princes for €120 million. These moves are part of a broader strategy to reinvest in the company’s core areas, positioning itself for long-term growth and value creation. The split, expected to be formalised soon, is seen as a potential means of unlocking greater shareholder value.