Kraft Heinz (KHC) is exploring a major restructuring that could include the spin-off of a large portion of its grocery business, The Wall Street Journal reported. The new entity, which will include many Kraft products, could potentially be valued at up to $20 billion. Following the news, KHC stock was up 1.3%.
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The remaining company would focus on faster-growing categories like sauces and condiments, including brands such as Heinz ketchup and Grey Poupon mustard. This break-up aligns with the changing consumer preference away from processed foods toward fresher, healthier options.
It must be noted that a final decision has not been made yet, and the board is still reviewing options. KHC is also figuring out which brands would go with the new spinoff.
Kraft Heinz Sheds Italian Brands
The news came after Kraft Heinz disclosed the sale of its Italian infant and specialty food business to NewPrinces Group. The divestiture includes well-known brands such as Plasmon, Nipiol, Dieterba, Aproten, and Biaglut, along with a major production facility in Latina, Italy.
The move is part of a larger plan to reduce operational complexity, free up capital, and reinvest in brands that offer stronger returns. The sale would help KHC streamline operations and focus on the growing sauces category.
The transaction is expected to close by the end of 2025, but regulatory approval is still pending.
Is Kraft Heinz a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on KHC stock based on 12 Holds and two Sells assigned in the past three months. The average Kraft Heinz stock price target is $28.77, implying an upside potential of 7.47%.
