Kraft Heinz is considering, according to informed circles, a spinoff of its traditional food business. The consideration involves spinning off classic product lines such as ready meals, processed cheese, and processed meats into an independent company. What remains would be a portfolio focused on stronger growth categories like sauces and condiments around Heinz Ketchup and Grey Poupon mustard.

This is how the corporation is responding to ongoing operational weakness and a current market value of only $31 billion – around 70 percent below the peak of 2017. Back then, Kraft Heinz was still considered a blueprint for value investors, led by Warren Buffett and 3G Capital. Today, the structure stands for missed opportunities, failed takeover attempts like with Unilever, and a changed consumer demand for less processed foods.

A spin-off of the low-margin portfolio could potentially release more value overall than the existing group in its current form, according to management's assessment. However, a final decision has not yet been made. Alternatively, selective sales of individual business units are also being considered.

In May, Kraft Heinz publicly announced that it was considering strategic options to enhance shareholder value. Since then, there have been increasing indications that the merger orchestrated by 3G and Berkshire Hathaway in 2015 could be unwound. At that time, Heinz acquired Kraft for 63 billion dollars, including a special dividend of 10 billion dollars to Kraft shareholders. Today, Berkshire holds around 27 percent, 3G has completely exited in 2023.

Buffett had already admitted in 2019 to being "wrong in some respects" with Kraft Heinz. In this context, Berkshire had to book a $3 billion write-down on the investment.