Kraft Heinz Splits into Two Companies–What It Means for Oscar Mayer and Heinz Fans

The Kraft Heinz company split is leaving consumers with a bad taste in their mouths. Cookouts, family gatherings, and tailgate parties, just wouldn’t be the same without a healthy dose of Heinz ketchup slathered on our hot dogs and Kraft cheese, slapped onto our hamburgers (or whatever other grilled items we may consume). Yet Kraft Heinz has decided to split. But before we talk about how the Kraft Heinz company split–let’s talk about how they came together in the first place.

How Did They Merge?

The merger first occurred when Warren Buffet’s Berkshire Hathaway group and their investing partner, 3G Capital decided to swoop down on Kraft and Heinz, as the next logical set of prized commodities to add to their portfolio.  3G in particular, is famous for revamping Anheuser Busch and Burger King, making beers and burgers much more palatable to consumers. Even so, the fact that Heinz and Kraft were bought up by such huge corporate entities, was disappointing for some, considering the roots of the company.

Heinz was the brain child of John Heinz, a German immigrant who founded his ketchup company from scratch. Kraft has a similar story. It was founded by James L. Kraft and his brothers in the early 20th Century, as a humble family-owned business in Chicago, before becoming incorporated in 1909. Just like Heinz ketchup, Kraft cheese soon became quite iconic. With perhaps Kraft Macaroni and Cheese (at least according to a multitude of college students with access to a microwave) being its most recognizable trademark. In any case, these two iconic giants merged in 2015 to form Kraft Heinz, becoming one of the largest food companies in the world. That is–until the Kraft Heinz company split.

The Kraft Heinz Company Split

The merger of Kraft and Heinz brought countless major name brands into the same bracket and was expected to be a real cash cow for investors. So, what went wrong? What led to the Kraft Heinz company split? Well–in the illustrious words of political strategist James Carville, “It’s the economy stupid!” Or at least, in this case, the personal economy of individual, cost conscious consumers. A fact that has been most demonstrably played out in the aisles of consumers’ go-to source for cheap goods–Walmart. 

Heinz ketchup for example, currently sells for around $3 at Walmart, whereas the Walmart “Great Value” brand of ketchup sells for just a $1 or less. As it turns out, consumers do indeed prefer the great value of ketchup for a buck, over the pricier flavor of Heinz. Cost conscious consumers are increasingly tossing their Heinz ketchup to the side. Much the same thing could be said for the prepackaged goods that Kraft offered. As such, Kraft Heinz appeared neither marketable nor profitable–thus, the Kraft Heinz company split.

So, What’s Next?

The Kraft Heinz company split is expected to reach its conclusion in 2026. As with any divorce, it will be quite painful to sort it all out.  Currently tasked with that job is Carlos Abrams-Rivera, who continues to serve as the CEO of Kraft Heinz, as the separation of the two companies is finalized. As the companies go their separate ways, both are expected to return their focus to the products that made each of them great.

Heinz will put its emphasis back on ketchup and other saucy seasonings, while Kraft will focus on its trademark cheese and other products. Yes, as these two titans of Americana say their final goodbyes in the messy divorce of Heinz and Kraft, countless Americans who have plenty of past memories of using their products (at least when they could afford them), can only wish them the best.