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Kraft Heinz halts split, new CEO says problems are 'fixable'
New CEO Steve Cahillane directs $600 million toward marketing and product development to reverse declines after weaker earnings and share price drop, aiming for profitable growth.
- On Wednesday, Kraft Heinz paused plans to split into two companies and will pivot to invest $600 million in marketing, sales and product development.
- In September, Kraft Heinz announced the split as a post-merger breakup plan a decade after the brands merged, and said it expected the split to be finalized in the second half of this year.
- Shares fell 5.2% in early trading after Kraft Heinz reported lower quarterly and annual results, but the company said its balance sheet and free-cash-flow potential remain strong in its fourth-quarter earnings release.
- One company would house stronger-selling brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese, while the other was to include slower-selling lines including Maxwell House, Oscar Mayer, Kraft Singles and Lunchables.
- AP Business Writer DEE-ANN DURBIN reported that Cahillane said, `We are confident in the opportunity ahead and believe this investment will accelerate our return to profitable growth.
95 Articles
95 Articles
Kraft Heinz pauses plans to split company, as new CEO plans $600 million investment
Five months ago the global food company Kraft Heinz said it would split into two independent companies, but it's now backing away from the plan following a challenging year.The Chicago-based company said Wednesday it would instead invest $600 million in its U.S. business on marketing, sales, research and development and other areas — with research and development investments increasing by 20% in 2026.“My number one priority is returning the busi…
Kraft Heinz Pauses Split as New CEO Says Packaged Foods Giant Is ‘Fixable’ - The Thinking Conservative News
Kraft Heinz is pausing plans to split into two companies as new CEO Steve Cahillane says its problems are “fixable and within our control.” The post Kraft Heinz Pauses Split as New CEO Says Packaged Foods Giant Is ‘Fixable’ appeared first on The Thinking Conservative News.
Kraft Heinz Pauses Split as New CEO Says Packaged Foods Giant Is ‘Fixable’
Kraft Heinz is pausing plans to split into two companies as new CEO Steve Cahillane says its problems are “fixable and within our control.” One month after joining the company, Cahillane stated that the objective is to return the packaged-foods maker to “profitable growth,” meaning it is “prudent to pause work related to the separation.” “We will no longer incur related dis-synergies this year,” Cahillane said on Feb. 11. In September, Kraft ann…
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