Packaged food giant Kraft Heinz has announced it is exploring “potential strategic transactions” in a bid to reverse a six-quarter decline in sales and unlock shareholder value. The company, known for household staples like Heinz ketchup, Jell-O, and Lunchables, did not offer specifics or a timeline for when any decisions might be made.
“Our goal has always been to deliver high-quality, great-tasting food while driving profitable long-term growth,” said CEO Carlos Abrams-Rivera. “In line with this mission, we have been evaluating potential strategic transactions over the past several months.”
The food manufacturer reported $26 billion in net sales in 2024 but continues to grapple with shifting consumer behavior, inflationary pressures, and slowing demand. Organic sales for fiscal 2025 are expected to fall between 1.5% and 3.5%, a steeper drop than earlier projections of flat to a 2.5% decline.
As part of its turnaround plan, Kraft Heinz has leaned into product innovation. Recent initiatives include launching Philadelphia-branded cream cheese frosting and introducing Crystal Light hard seltzers. The company aims to generate an additional $2 billion in net sales by 2027 through such innovations and adjacent category expansions.
However, analysts remain cautious. Robert Moskow of TD Cowen noted that Kraft Heinz may consider divesting underperforming assets. “We believe KHC should slim down its portfolio,” he said, citing past indications that brands like Maxwell House and Oscar Mayer—part of the company’s “balance” segment—could be on the chopping block. These brands contribute about 25% of sales but are vulnerable to competition from private labels and commodity price swings.
In a separate development, Kraft Heinz also revealed that two board members associated with Berkshire Hathaway—Timothy Kenesey and Alicia Knapp—have stepped down. The move follows Warren Buffett’s decision to relinquish board influence, though the company clarified the resignations were not due to disagreements with management or company direction.
The strategic review and board reshuffle mark a pivotal moment for Kraft Heinz as it attempts to reshape its business amid a rapidly evolving food landscape, where health-conscious and cost-sensitive consumers are reshaping demand patterns.