Split plan suspended, Kraft Heinz accelerates profitable growth

Less than half a year after Kraft Heinz announced plans to split into two independent publicly traded companies—“North American Food & Grocery” and “Global Flavors Enhancement”—the split has been put on hold. Recently, Kraft Heinz announced the suspension of the split plan, redirecting approximately $600 million originally intended for the restructuring toward marketing, sales capability building, R&D, product quality improvement, and strategic pricing adjustments.

According to the original plan, to simplify the business structure, enhance brand resource allocation, and improve profitability, Kraft Heinz aimed to officially split into two independent companies in the second half of 2026. One would focus on the North American market, including brands like Maxwell House, Oscar Mayer, and Lunchables; the other, called “Global Flavors Enhancement,” would be the international business entity, including brands like Heinz, Philadelphia Cream Cheese, and Kraft Mac & Cheese.

Steve Cahillane, who became Kraft Heinz CEO in January 2026, stated, “My top priority is to restore profitable growth, which requires ensuring all resources are fully focused on executing operational plans. Therefore, we believe it is prudent to pause the split work. This year, we will no longer bear the negative impacts associated with the split.” When asked whether the split plan is temporarily delayed or indefinitely suspended, he only said, “The current external environment is not conducive to advancing the split.”

Following the halt of the highly anticipated split plan and a shift toward profitable growth, management changes at Kraft Heinz have also occurred. Recently, Kraft Heinz announced that Nicolas Amaya will succeed Pedro Navio as North American Business Head on February 23, 2026, overseeing Kraft Heinz’s largest market. Public information shows that Nicolas Amaya joined Kellogg’s in 2001, responsible for brands like Eggo and Pop-Tarts, managing cereal, frozen foods, and snacks in the U.S. and Latin America, and previously served as Senior Vice President and President of Kellanova North America.

Jiang Han, senior researcher at Pangu Think Tank, commented that from an external environment perspective, the food industry is currently facing multiple challenges such as intensified competition. Kraft Heinz’s priority to stabilize core business reflects a more cautious strategic approach. The split process itself would incur significant one-time costs, including legal, tax, and system separation expenses. Pausing the decision aligns with cost minimization principles. Additionally, splitting would mean abandoning scale advantages in procurement, distribution, and R&D; maintaining integrated operations allows resource sharing to better withstand market fluctuations.

Zhan Junhao, a well-known strategic positioning expert and founder of Fujian Huace Brand Positioning Consulting, believes that Kraft Heinz’s halt of the split is essentially a return to operational self-rescue from capital operations. The decisive pause by the new CEO indicates a move away from short-term capital stories toward pragmatic decisions focused on restoring fundamentals.

Alongside the strategic shift and management adjustments, Kraft Heinz reported a less-than-ideal financial performance. The financial report shows that in 2025, Kraft Heinz achieved revenue of $24.9 billion, a 3.5% decrease year-over-year; net loss of $5.8 billion; and organic net sales down 3.4% compared to the previous year. Sales volume declined by 4.1% year-over-year, further widening from the previous 3.5% drop, completely offsetting price increases. Specifically, sales declined in North America and developed international markets, while growth in emerging markets partially offset this impact.

During a conference call, Steve Cahillane, the new CEO, stated that to achieve sustainable profitable growth, the company plans to increase R&D investment by about 20% compared to 2025, raise marketing investment to approximately 5.5% of net sales, and continuously refine pricing strategies.

Regarding these initiatives, Jiang Han said that although Kraft Heinz has many iconic brands, they have aged significantly in recent years. Marketing investment can directly stimulate sales recovery. Compared to the one-time costs of splitting, marketing is a continuous investment that can build brand assets. The combined investment in R&D and pricing strategies aligns with industry competitive logic. R&D can enhance product superiority and differentiate competitiveness. The key to success lies in precise investment and organizational execution. The new CEO’s experience in the fast-moving consumer goods industry is a positive signal, but caution is needed against the linear thinking trap of “investment equals growth.”

The Beijing Business Daily reporter sent interview requests to Kraft Heinz regarding the suspension of the split plan and how to achieve profitable growth, but as of press time, no response has been received.