Kraft Heinz Is Splitting Up. Here's What Will Happen To Your Favorite Brands
With plenty of shake-ups in the world of food and beyond, mergers are the name of the game these days. When two iconic brands, Kraft and Heinz, merged in 2015, the newly minted Kraft Heinz company became the fifth-largest food and beverage company in the world. Recent news of plans to separate this giant into two distinct publicly traded companies might come as a bit of a shock to consumers who have become accustomed to frequent mergers. Though the two companies' names are yet to be determined, there is some insight into the hows and whys behind this monumental decision. According to a press release, the intent to maximize performance and profit is certainly a major factor, as each of the two companies will encompass a number of recognizable household name brands. Given the longevity of both Heinz and Kraft as iconic old-school food brands, it's hoped that this separation will bring about improved offerings of all your favorite foods.
With a reach across 56 different product categories, it seems as if the idea behind splitting up Kraft Heinz is to keep it simple. On the one hand, the currently-named "Global Taste Elevation Co." will cover shelf-stable foods like Heinz products, Philadelphia Cream Cheese, and Kraft Mac & Cheese, the latter of which still ranks highly among popular instant mac and cheese brands. The second company to emerge from this split is temporarily named "North American Grocery Co." and includes brands such as Oscar Mayer, Kraft Singles, and the ever-popular Lunchables.
What does this all mean?
Though it's hard to predict the future, it would seem as if this split signals a new era for many of your favorite food brands, with the desired outcome being even better products, flow of resources, and — fingers crossed — improved pricing at the checkout line. Of course, any sort of speculation at this point is just that. The future of your favorite packaged meals, cold-cuts, cheeses, and more remains yet to be seen. The vast umbrella of products under Kraft Heinz covers a huge variety of brands like Kool-Aid, Maxwell House, Velveeta, Taco Bell, Cool Whip, and much more. Observing this split will certainly be interesting to see which brands get placed where in the hopes of even greater success than before.
The best option right now is to keep an eye on the shelves and stay tuned to more food news for all the latest updates. Be sure to make your voice heard by patronizing the products you love the most. Whether you're loading up an Oscar Mayer hot dog with Heinz mustard and ketchup or finding new ways to dress up your preferred style and flavor of Kraft Mac & Cheese, keep in mind that these legacy brands have lasted this long through innovation, strategic decisions, and the love of food and feeding people.