Kraft Heinz is exploring a portfolio overhaul as it responds to declining performance in its core markets. While the company has yet to confirm specific divestments, recent activity and internal segmentation suggest that several legacy brands could be on the chopping block.
North America’s largest division’s sales fell sharply in the first quarter of fiscal 2025, dropping to $4.5 billion from $4.8 billion a year earlier. Overall net income slipped 11%, and total company revenue declined more than 6%. The downturn has been linked to underperformance across several mature brands, many of which now face increased pressure from private-label competitors and shifting consumer preferences.
In recent years, Kraft Heinz has classified parts of its portfolio as “balance” assets—brands with scale but vulnerable to commodity swings and lower-margin competition. These include names like Oscar Mayer, Maxwell House, and Jell-O, which may now face scrutiny as the company repositions for longer-term growth.
Kraft Heinz has a track record of carving off slower-growth assets. In 2021, it offloaded parts of its cheese business to Lactalis and Emmi Roth. Market reports in 2024 pointed to a potential $3–5 billion sale of its Oscar Mayer division.