:max_bytes(150000):strip_icc()/GettyImages-2184957264-5ebd8aab8168413ca672bf3a5fbe2ed1.jpg "Kraft Heinz Shakes Up Leadership Ahead of Company Split")
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Key Takeaways
- Kraft Heinz is overhauling leadership as it moves toward a planned breakup, appointing former Kellanova chief Steve Cahillane to lead Global Taste Elevation Co.
- The food and beverage company is launching a CEO search for its North American Grocery Co. spinoff.
Kraft Heinz (KHC) is changing its recipe for leadership ahead of a planned split next year.
The food and beverage giant on Tuesday said Steve Cahillane will become its CEO, effective Jan. 1. Cahillane, who was Kellanova’s chief executive until its recent acquisition by Mars, also will join its board and serve as CEO of “Global Taste Elevation Co.” following Kraft’s planned split into two independent, publicly traded companies. Global Taste will take on the company’s sauces and spreads businesses after a high-profile separation set to undo a high-profile, decade-old merger.
Current CEO Carlos Abrams-Rivera will step down Jan. 1, remaining an adviser until early March, Kraft Heinz said. Abrams-Rivera was expected to lead the post-split grocery business—”North American Grocery Co.,”—but Kraft Heinz’s board will instead start a global search for a leader, the company said.
Why This Matters
Kraft Heinz’s upcoming breakup is driving major leadership changes. These shifts and restructuring highlight a reset that could reshape the company’s future value and investor expectations.
“Global Taste Elevation Co.” is the bigger of the two planned companies, housing brands including Heinz ketchup, Philadelphia cream cheese, and Kraft Mac & Cheese. “North American Grocery Co.” will include Oscar Mayer, Kraft Singles, and Lunchables.
The news marks the latest leadership change at a high-profile consumer-focused business. Walmart (WMT) recently said it would change CEOs, as did Coca-Cola (KO). Lululemon (LULU) did the same, though it, like North American Grocery, announced a search for a new chief rather than name a replacement.
The company said in May that deals were on the table, and reports surfaced in July that a break-up was in the works. Kraft Heinz officially said in September that it planned to break up, undoing a merger that was just a decade old.
Kraft Heinz this summer announced plans to remove synthetic dyes from its U.S. products by the end of 2027. Approximately 10% of the company’s U.S. products by net sales contain synthetic colors, the company said in June. Around the same time, the food giant had to recall nearly 368,000 pounds of turkey bacon because of potential listeria contamination.
Shares of Kraft Heinz, little changed in early afternoon trading, are down about a fifth for the year.
