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The giant of packaging food Kraft Heinz is studying a break a decade after Warren Buffett and 3G capital fused both brands, people said on the matter.
The decision occurs after the company known by Heinz Ketchup and Kraft Macaroni & Cheese in May said that he was considering several options to reverse his persistent lower performance, people said.
One of the plans that are being considered includes turning much of its traditional grocery wallet, which would include dinner in box, processed cheese and packaged meats, in an independent company, people said.
The remaining business, which would include heinz condiments, Poupon gray mustard and a broader list of sauces, could be established for faster growth due to changing tastes of consumers, they added.
Executives believed that two separate companies could be worth more than the market value of $ 31 billion of Kraft Heinz, the people involved in the conversations said.
People emphasized that a final decision had not been made and it was still possible for the company to choose some assets and remain as a unique entity.
“As announced in May, Kraft Heinz has been evaluating possible strategic transactions to unlock the value of shareholders,” said the company. “Beyond that, we don’t comment on rumors or speculations.”
The internal debate occurs when the large food groups confront pressure intensification to remodel their portfolios in the face of inflation, consumers aware of health and the growing competence of private labels.
An improper rupture of the 2015 agreement, in which Heinz bought Kraft. Brazilian investors behind 3G Capital and Buffett were widely seen as pioneers to revive consumption brands with difficulties thanks to their aggressive cost reduction strategy.
However, after the acquisition, Kraft Heinz suffered setbacks, including the rejection of Unilever, which in 2017 rejected its access offer of $ 143 billion and an accounting scandal.
Buffett admitted to paying in excess for Kraft in 2019, saying that he had been “wrong in a couple of ways in Kraft Heinz.” Berkshire took a $ 3 billion Writitadawn linked to his investment in the business at that time.
The Railroad conglomerate to insurance based in OMAHA was initially associated with 3G in 2013, when it led the US ketchup manufacturer. UU. In an agreement of $ 28 billion. Two years later they took Kraft control in an agreement for a value of $ 63 billion, including a special dividend of $ 10 billion Berkshire and 3G funded for the existing shareholders of Kraft, according to Dealogic.
The 2015 acquisition gave the majority control of Heinz investors of combined companies, and Kraft shareholders retained a 49 percent participation in the company that quotes on the stock market.
Berkshire, who has approximately 27 percent of Kraft Heinz, did not immediately respond to a request for comments. 3G left its participation in Kraft Heinz in 2023, according to regulatory presentations of the United States.
The value of Kraft Heinz shares has dropped approximately 70 percent from the maximums it reached in 2017, when the company was seen as a pioneer in the industry.
The news of the possible rupture was first reported by the Wall Street Journal.
