Kraft Heinz to Separate Into Two Publicly Traded Companies скачать в хорошем качестве

Kraft Heinz to Separate Into Two Publicly Traded Companies

Kraft Heinz Co. said Tuesday it plans to split into two separate companies, undoing a mega-deal ushered in a decade ago that turned the maker of Kraft Mac & Cheese into one of the largest packaged food sellers in the world. Following the breakup, one company will be made up of its Heinz Ketchup and other iconic condiments and boxed meals — a unit that currently generates $15.4 billion in sales. The second firm will include the slower-growing grocery products such as Oscar Mayer hot dogs and Lunchables, which currently generate revenue of $10.4 billion. The company had foreshadowed this move, and its shares were little changed following the announcement. The stock was down about 21% in the 12 months through Friday’s close. The aim is to siphon off lagging grocery staples into a new entity, allowing its faster-moving products more room to run and management to better focus on growing each side of the business. The company said the split will occur through a tax-free spinoff, and the companies’ names will be determined later. “The complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” said Miguel Patricio, Kraft’s current chairman. “By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand.” Shelly Banjo, Managing Editor for Global Business at Bloomberg News, speaks with Tom Keene and Paul Sweeney on Bloomberg Surveillance. Analysts said the long-term performance of both is uncertain given that consumers are shifting away from processed food. “Questions remain around the true growth and margin potential for both new companies,” Scott Marks, an analyst at Jefferies, wrote in a note Tuesday that cited “long-term weaker consumption trends.”  Food Deals The Kraft Heinz split follows similar breakups by other food and drink companies, including Kellogg, which broke into two firms in 2023, and Keurig Dr Pepper, which recently said it would undo a 2018 deal that brought together its coffee and beverage businesses. The latest announcement unwinds a $46 billion merger that united two iconic brands a decade ago. Centerview Partners, the exclusive financial adviser to Kraft Foods Group Inc. during the 2015 merger, has nabbed the key advisory role for the current breakup. The original deal, orchestrated by 3G Capital and Warren Buffett’s Berkshire Hathaway Inc., forged an industry behemoth shortly before new forces began to reshape Americans’ shopping, including greater demand for healthier, less-processed foods, new weight-loss drugs and rising inflation that’s caused consumers to cut back.  Buffett, who conceded the merger wasn’t a brilliant idea, said he’s nonetheless disappointed about the planned split.  “Scale by itself is not enough,” Chief Executive Officer Carlos Abrams-Rivera said on a call with analysts Tuesday. The separation “allows us to make sure that we have that level of focus now as we go forward, and at the same time maintaining a level of scale that I think is important to compete in this marketplace.” Abrams-Rivera, who noted he previously worked in the Oscar Mayer deli meat brand, will become CEO of the grocery company following the spinoff. Patricio said the board picked Abrams-Rivera for the role because of his prior experience.  At a time when many consumers are moving away from highly processed foods, Abrams-Rivera said in an interview Tuesday that the grocery company will continue to highlight its efforts to reduce sugar and sodium and emphasize the high protein levels of products such as Oscar Mayer deli meats.  “It will only give us opportunity to do further investments in capability, in resources to continue for us to evolve our portfolio into more wellness options for families,” he said.  The grocery entity will also house Kraft Singles cheese, Capri-Sun drinks and Maxwell House coffee, while the condiments company will include Philadelphia cream cheese. Kraft Heinz said the full divvying up of brands would be announced later. -------- Watch Bloomberg Radio LIVE on YouTube Weekdays 7am-6pm ET WATCH HERE: http://bit.ly/3vTiACF Follow us on X:   / bloombergradio   Subscribe to our Podcasts: Bloomberg Daybreak: http://bit.ly/3DWYoAN Bloomberg Surveillance: http://bit.ly/3OPtReI Bloomberg Intelligence: http://bit.ly/3YrBfOi Balance of Power: http://bit.ly/3OO8eLC Bloomberg Businessweek: http://bit.ly/3IPl60i Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts:    / bloombergpodcasts   Bloomberg Television:    / @markets   Bloomberg Originals:    / bloomberg   Quicktake:    / @bloombergquicktake