Kraft Heinz’s Big Breakup: A $25 Billion Shake-Up That May Not Please Warren Buffett!

Kraft Heinz’s decision to split into two independent companies by 2026 marks a dramatic unraveling of the 2015 megamerger orchestrated by Warren Buffett’s Berkshire Hathaway and 3G Capital. Once heralded as a union of food titans to unlock economies of scale, the split reflects a strategic pivot to specialization over breadth. The new structure will separate the $15 billion global “Taste Elevation” unit—home to iconic brands like Heinz ketchup and Kraft Mac & Cheese—from the $10 billion North American grocery staples business that includes Oscar Mayer, Lunchables, and Kraft Singles. CEO Carlos Abrams-Rivera will lead the latter, while leadership for the global segment remains undecided. The company is pitching this move as a bid to sharpen focus, unlock growth potential, and better allocate resources. However, the announcement sparked a sharp 7% decline in the company’s stock, and Berkshire Hathaway—its largest shareholder with a 27.5% stake—openly criticized the move as costly and disruptive, questioning the real value created.