Kraft Heinz’s $20 Billion Breakup Bombshell: Inside the Dramatic Unwinding of a Failed Megamerger

In a dramatic turn of events, Kraft Heinz is preparing to split its business nearly a decade after one of the most storied mergers in consumer packaged goods history. The company plans to spin off a large chunk of its grocery portfolio — including iconic Kraft-branded products — into a standalone entity that could be valued at up to $20 billion. This move comes as Kraft Heinz struggles to regain momentum in a market rapidly shifting toward fresher, less processed, and more value-driven food choices. The announcement follows a string of portfolio reshuffles, including the sale of its infant and specialty-food business in Italy and recent guidance revisions driven by inflation, changing consumer behavior, and tariff uncertainty. Despite Berkshire Hathaway remaining a major shareholder, Warren Buffett has stepped away from board-level influence, and 3G Capital has fully exited its position. With brand renovation efforts in full swing and consumer tastes evolving faster than ever, the breakup underscores deeper structural issues that Kraft Heinz could no longer ignore.