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Kraft Heinz

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The Kraft Heinz Company
TypePublic
IndustryFood
Predecessor
FoundedJuly 2, 2015; 11 years ago (2015-07-02)
Headquarters
Chicago, Illinois, and Pittsburgh, Pennsylvania
,
United States
Area served
Worldwide
Key people
[2]
Products
RevenueDecrease US$24.942 billion (2025)
Decrease −US$4.669 billion (2025)
Decrease −US$5.848 billion (2025)
Total assetsDecrease US$81.786 billion (2025)
Total equityDecrease US$41.664 billion (2025)
Owners
Number of employees
c. 35,000 (2025)
Websitekraftheinzcompany.com
Footnotes
Financial figures are for the fiscal year ended December 27, 2025.[2]

The Kraft Heinz Company, commonly known as Kraft Heinz, is an American multinational food company formed on July 2, 2015, through the merger of Kraft Foods Group and the H.J. Heinz Company. It is co-headquartered in Chicago and Pittsburgh and manufactures and markets packaged foods and beverages under brands including Kraft, Heinz, Oscar Mayer, Philadelphia, Lunchables, Velveeta, Maxwell House, and Jell-O. In fiscal 2025, the company reported net sales of US$24.9 billion and employed approximately 35,000 people in 40 countries.[2]

Since the merger, Kraft Heinz has made an unsuccessful takeover approach for Unilever, recorded large brand write-downs, faced an accounting investigation by the U.S. Securities and Exchange Commission, and reshaped its portfolio through acquisitions and divestitures. In September 2025, the company announced a proposed separation into two publicly traded companies. Its board paused work on the separation in February 2026, and Kraft Heinz said in May 2026 that the timing and completion of the proposal remained uncertain.[2][3]

History

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From left: James L. Kraft (1874–1953) and Henry J. Heinz (1844–1919), founders of the Kraft and Heinz businesses that preceded Kraft Heinz

Formation and early years

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Private equity firm 3G Capital and Berkshire Hathaway had jointly taken H. J. Heinz private in 2013.[4] In January 2015, 3G Capital managing partner Alex Behring met with new Kraft CEO John Cahill to propose a merger between Kraft and Heinz.[5] Cahill brought the idea to Kraft's board the following month.[5]

In March 2015, the boards of Kraft Foods Group and H.J. Heinz agreed to merge, subject to shareholder and regulatory approval.[6] Heinz Chief Executive Officer Bernardo Hees would lead the new company, with Alex Behring becoming Chairman and John Cahill Vice Chairman.[7] The transaction was completed on July 2, 2015, creating The Kraft Heinz Company.[8] At the time it was announced, the combined company was described as the world's fifth-largest food and beverage company.[9]

In February 2017, Kraft Heinz made a $143 billion takeover approach for the British-Dutch consumer-goods company Unilever. Unilever rejected the proposal, and Kraft Heinz abandoned the approach two days later.[10][11]

In October 2017, Mondelez sold most of its sauce business in Europe (Primarily Kraft-Branded Condiments and Bull's-Eye Barbecue Sauce in Germany) to Kraft Heinz as a result of Mondelez's licence to use the Kraft name expiring. As a result, Kraft Heinz again had the rights to use the Kraft trademark in Europe, excluding Mondelez's European Grocery Business and the ownership for Miracle Whip in Germany and Philadelphia Cream Cheese in Europe.[12]

Kraft Heinz subsequently acquired Cerebos Pacific in March 2018 and Primal Kitchen in January 2019. The acquisitions cost $244 million and $201 million, respectively.[13]

Accounting investigation and portfolio changes

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In February 2019, Kraft Heinz announced a $15.4 billion write-down of its Kraft and Oscar Mayer brands, cut its dividend, and disclosed that the U.S. Securities and Exchange Commission (SEC) had opened an investigation into its accounting practices the previous year.[14][15] Ultimately, an internal investigation at Kraft Heinz found that years of accounting errors had caused it to understate its cost of goods sold by $208 million.[16] More immediate, though, was the market reaction to this kitchen sink dump of bad news: the value of Kraft Heinz stock dropped $16 billion the morning following the announcement.[17]

The destruction of so much shareholder value ensured an executive shakeup at Kraft Heinz. Anheuser-Busch InBev Chief Marketing Officer Miguel Patricio was announced as CEO Bernardo Hees' replacement on April 22, 2019.[18][19] Originally slated to replace Hees in July, Patricio took over as chief executive on June 25, 2019.[18][20] The departures of Chief Marketing officer Eduardo Luz and Eduardo Pelleissone, Kraft Heinz’s head of strategic projects, were also announced.[21]

In 2021, the company agreed to pay $62 million to settle SEC charges related to the improper accounting practices.[22][23] Additionally, Pelleissone and former chief procurement officer Klaus Hofmann paid sanctions of $300,000 and $100,000, respectively, for their roles in the scheme, with Hofmann further accepting the sanction that he would be barred from serving as an officer or director of a U.S.-listed public company for five years.[22][24]

From 2020 through 2022, Kraft Heinz sold a large part of its cheese business to Lactalis and its nuts business, including Planters, to Hormel. It also acquired Assan Foods, Hemmer, and a majority stake in the German spice company Just Spices.[25][26][27]

In April 2024, it was disclosed that private equity firm 3G Capital had sold its 16.1% stake in Kraft Heinz.[28]

Proposed separation

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On September 2, 2025, Kraft Heinz announced a plan to separate into two independent, publicly traded companies through a spin-off intended to be tax-free. One proposed company would focus on sauces, spreads, seasonings, and shelf-stable meals, while the other would focus on certain North American grocery staples. The company said the final names of the proposed businesses had not been determined.[29][2]

In December 2025, Kraft Heinz announced that Steve Cahillane would succeed Carlos Abrams-Rivera as chief executive and that John T. Cahill would become chair of the board, both effective January 1, 2026.[30] On February 11, 2026, the board paused work on the separation. In its May 2026 quarterly report, Kraft Heinz said the timing and completion of the proposal remained uncertain.[2][3]

Brands

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As of 2023, a partial list of global brands included in the Kraft Heinz portfolio:[31]

Kraft and Heinz:

Other:

Finance

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For the fiscal year 2017, Kraft Heinz reported earnings of US$11.0 billion, with annual revenue of US$26.2 billion, a decline of 0.6% over the previous fiscal cycle. Kraft Heinz's shares traded at over $61 per share, and its market capitalization was valued at over US$136 billion in September 2018.[33]

In February 2019, shares in Kraft Heinz fell to a record low of under $35 after the company reported a $10.2bn loss for the previous year as the company announced that it would take a $15.4 billion writedown of its Kraft and Oscar Mayer brands, cut its dividend, and acknowledged that the U.S. Securities and Exchange Commission had opened a probe into its accounting practices.[34] In August 2019, Kraft Heinz announced a further $1.22 billion in writedowns,[35] as well as the return of its former CFO, Paulo Basilio, who held the position until 2017, to replace David Knopf, saying that it wanted a "seasoned veteran" following a series of accounting errors.[36]

On February 21, 2019, Kraft Heinz reported that it received a Securities and Exchange Commission (SEC) subpoena in October that aimed to look into the company's accounting policies and internal controls.[37] Kraft Heinz also announced that it cut its dividend from 62.5 cents a share to 40 cents.[37] The company also announced a goodwill impairment charge that wrote down the value of the company's Kraft and Oscar Mayer brands of $15.4 billion in the fourth quarter, which resulted in a net loss of $12.61 billion.[38] The all-resulting news made the company's stock crash more than 20% in after-hours trading.[38] The stock plunge resulted in Berkshire Hathaway, the largest stockowner, recording a write down of $3 billion and a stock value loss of $4.3 billion just a day before Berkshire Hathaway's quarterly earnings and annual report to investors.[39][40]

In September 2020, Kraft Heinz announced its new enterprise strategy, including plans to cut $2 billion in costs over five years, resulting in an estimated generation of 4% to 6% adjusted earnings per share growth.[41] The announcement resulted in multiple stock upgrades by CFRA and Guggenheim due to the renewed positive financial outlook of the company.[42]

In September 2021, Kraft Heinz was fined $62m to settle the U.S. Securities and Exchange Commission probe into an improper claim of $200m in cost savings.[43][44] The $200 million in "bogus cost savings" (reportedly from merger) forced the company to restate its financial results for the years 2015 through 2018.[45]

Year Revenue
in million US$		 Net income
in million US$		 Price per Share
in US$		 Employees
2010 17,797 3,534
2011 18,576 1,775
2012 18,271 1,637
2013 11,529 1,013
2014 10,922 −63
2015 18,338 −266 77.01 42,000
2016 26,487 3,452 81.91 41,000
2017 26,232 10,999 61.75 39,000
2018 26,300 −10,200
2019 24,977 1,935
2020 26,185 1,032 34.66 38,757
2021[46] 26,040 1,020
2022[47] 26,485 2,368
2023[48] 26,640 2,855 36,000
2024[48] 25,846 2,744 36,000

Animal welfare

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In 2017, Kraft Heinz committed to making a number of improvements to the welfare of broiler chickens in their supply chains by 2024. These included commitments to source chickens from high welfare breeds, provide birds with more space, and implement third-party monitoring.[49]

In 2019, Kraft Heinz made an updated pledge to comply with the European Chicken Commitment, an animal welfare standard, for 100% of the chickens in its supply chain, by 2026.[50]

In 2021, the BBFAW, an animal welfare monitoring organization, gave Kraft Heinz a rating that indicated it had established animal welfare practices but still has room to grow. At that time, according to Kraft Heinz, 70% of the chickens in the company's supply chain were cage-free or free-range.[51]

Controversies

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In 2017, the claim that the Kraft Parmesan Cheese label was misleading was rejected by judges. The label reads "Kraft 100% Grated Parmesan Cheese". It was argued that a "reasonable consumer" would know the product could not be 100% cheese, as any dairy product degrades quickly without preservatives.[32]

On December 1, 2023, a federal jury in Illinois awarded $17.8 million to several large food companies, including Kraft Heinz, in a lawsuit against Cal-Maine Foods, Inc. and others over allegations of egg price fixing. Cal-Maine Foods, contesting the verdict, insists on its innocence and the absence of wrongdoing in its business practices.[52]

See also

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References

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  1. ↑ "Kraft Heinz will slim down to fit into new Aon Center HQ space". Crain's Chicago Business. July 16, 2015. Retrieved April 26, 2020.
  2. 1 2 3 4 5 6 7 "Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 12, 2026. Retrieved July 23, 2026.
  3. 1 2 "Quarterly Report (Form 10-Q)". U.S. Securities and Exchange Commission. May 6, 2026. Retrieved July 23, 2026.
  4. ↑ Jargon, Julie (June 10, 2013). "New Heinz Chief Moves Quickly To Revamp Ranks". The Wall Street Journal. Retrieved August 22, 2026 – via ProQuest. In announcing the closure Friday of the acquisition by Berkshire Hathaway Inc. and Brazilian private-equity firm 3G Capital...
  5. 1 2 Mattioli, Dana; Cimilluca, Dana (March 26, 2015). "Deal-Hungry Brazilians Came Knocking, Found Welcome Mat". The Wall Street Journal. Retrieved August 22, 2026 – via ProQuest.
  6. ↑ "Kraft Foods to merge with Heinz". BBC News. March 25, 2015. Archived from the original on February 26, 2017. Retrieved October 9, 2016.
  7. ↑ "Heinz and Kraft Foods sign merger agreement". Press Ideas. March 16, 2015. Retrieved August 27, 2026 – via ProQuest.
  8. ↑ "The Kraft Heinz Company Announces Successful Completion of the Merger between Kraft Foods Group and H.J. Heinz Holding Corporation" (PDF). The Kraft Heinz Company. July 2, 2015. Archived from the original (PDF) on July 14, 2015. Retrieved July 23, 2026.
  9. ↑ Nolan Feeney (March 25, 2015). "Kraft and Heinz Merge to Become World's 5th-Largest Food Company". Time. Archived from the original on October 8, 2016. Retrieved October 9, 2016.
  10. ↑ Chaudhuri, Saabira; Gasparro, Annie; Steele, Anne (February 17, 2017). "Kraft's $143 Billion Bid for Unilever Highlights Squeeze in Consumer Goods". The Wall Street Journal. Archived from the original on February 17, 2017. Retrieved February 17, 2017.
  11. ↑ Armstrong, Ashley (February 19, 2017). "Kraft Heinz abandons £115bn Unilever mega deal". The Telegraph. Archived from the original on February 19, 2017. Retrieved February 19, 2017.
  12. ↑ "Kraft Heinz can reacquire brand names from Mondelez". www.bundeskartellamt.de. October 16, 2017.
  13. ↑ "Quarterly Report (Form 10-Q)". U.S. Securities and Exchange Commission. October 31, 2019. Retrieved July 23, 2026.
  14. ↑ "Kraft Heinz shares fall as appetites wane". BBC News. February 22, 2019. Archived from the original on February 23, 2019. Retrieved February 22, 2019.
  15. ↑ Eavis, Peter (February 21, 2019). "Kraft Heinz Stock Plunges as Tastes Change and S.E.C. Investigation Begins". The New York Times. Retrieved August 21, 2026 – via ProQuest.
  16. ↑ Haddon, Heather (June 7, 2019). "Kraft Heinz Concludes Internal Investigation Into Accounting Errors; Food conglomerate had delayed financial disclosures after writing down the value of some brands". The Wall Street Journal. Retrieved August 21, 2026 – via ProQuest.
  17. ↑ Stoll, John D. (March 2, 2019). "EXCHANGE --- On Business: Bad News: Better as Deluge or Drip? --- Kraft Heinz took the rip-off-the-Band-Aid approach, which has its risks". The Wall Street Journal. Retrieved August 21, 2026 – via ProQuest.
  18. 1 2 "Kraft Heinz Picks New C.E.O. as It Faces Weak Sales and S.E.C. Inquiry". The New York Times. April 22, 2019. Retrieved August 21, 2026 – via Proquest.
  19. ↑ Hirsch, Lauren (April 22, 2019). "After brutal year, Kraft Heinz taps AB InBev's Miguel Patricio to replace CEO Bernardo Hees". CNBC. Retrieved August 21, 2026.
  20. ↑ "Current Report (Form 8-K)". U.S. Securities and Exchange Commission. June 25, 2019. Retrieved July 23, 2026.
  21. ↑ Hirsch, Lauren (May 4, 2019). "Executive turnover at Kraft Heinz continues as chief marketing officer departs". CNBC. Retrieved August 21, 2026.
  22. 1 2 "SEC Charges The Kraft Heinz Company and Two Former Executives for Engaging in Years-Long Accounting Scheme". U.S. Securities and Exchange Commission. September 3, 2021. Retrieved July 23, 2026.
  23. ↑ Stacey, Kiran; Evans, Judith (September 3, 2021). "Kraft Heinz to pay $62m to settle SEC false accounting charges". Financial Times. London. Retrieved September 11, 2021.
  24. ↑ Michaels, Dave; Bunge, Jacob (September 3, 2012). "Kraft Heinz to Pay $62 Million to Settle SEC Accounting Probe; Two Kraft executives accused of having roles in expense-management scheme". The Wall Street Journal. Retrieved August 21, 2026 – via ProQuest.
  25. ↑ Channick, Robert (November 29, 2021). "Lactalis completes $3.3 billion acquisition of Kraft Heinz natural cheese business, launches new Chicago office". Chicago Tribune. Retrieved December 11, 2021.
  26. ↑ Lucas, Amelia (February 11, 2021). "Kraft Heinz sells nuts business, including Planters, to Hormel for $3.35 billion". CNBC.
  27. ↑ "Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 16, 2023. Retrieved July 23, 2026.
  28. ↑ Lucas, Amelia (April 9, 2024). "3G Capital quietly exited its Kraft Heinz investment last year". CNBC. Retrieved August 21, 2026.
  29. ↑ Newman, Jesse; Langley, Karen (September 2, 2025). "Kraft Heinz Is Splitting Into Two Companies". The Wall Street Journal. Retrieved September 3, 2025.
  30. ↑ "Current Report (Form 8-K)". U.S. Securities and Exchange Commission. December 16, 2025. Retrieved July 23, 2026.
  31. ↑ "Global Brands". The Kraft Heinz Company. Retrieved September 29, 2021.
  32. 1 2 "U.S. judge tosses lawsuits about labels on Parmesan cheese". Reuters. August 24, 2017. Retrieved February 28, 2023.
  33. ↑ "Kraft Heinz – 3 Year Stock Price History | KHC". MarcoTrends. Archived from the original on October 27, 2018. Retrieved October 27, 2018.
  34. ↑ "Kraft Heinz shares fall as appetites wane". BBC News. February 22, 2019. Archived from the original on February 23, 2019. Retrieved February 22, 2019.
  35. ↑ "Kraft Heinz Writes Down $1.2 Billion as Brands Wither". www.wsj.com. Archived from the original on August 17, 2019. Retrieved August 18, 2019.
  36. ↑ Maidenberg, Heather Haddon and Micah. "Kraft Heinz Replaces Finance Chief". WSJ. Archived from the original on August 26, 2019. Retrieved August 26, 2019.
  37. 1 2 LaVito, Angelica; Wang, Christine (February 21, 2019). "Kraft Heinz slashes dividend, discloses SEC subpoena". CNBC. Retrieved February 23, 2019.
  38. 1 2 Wattles, Jackie (February 21, 2019). "Kraft Heinz posts huge loss, slashes dividend and reveals SEC investigation". CNN. Retrieved February 23, 2019.
  39. ↑ Imbert, Fred (February 23, 2019). "Berkshire Hathaway battered by Kraft-Heinz woes, posting a Q4 loss and a $3 billion writedown". CNBC. Retrieved February 23, 2019.
  40. ↑ Franck, Thomas (February 22, 2019). "Buffett's Berkshire Hathaway loses $4.3 billion on Kraft Heinz plunge". CNBC. Retrieved February 23, 2019.
  41. ↑ Lucas, Amelia (September 15, 2020). "Kraft Heinz looks to revamp Oscar Mayer brand, cut 20% of products, as it rethinks business". CNBC. Retrieved September 18, 2020.
  42. ↑ Garcia, Tonya. "Kraft Heinz stock upgraded twice with analysts upbeat about ongoing business transformation". MarketWatch. Retrieved September 18, 2020.
  43. ↑ "SEC.gov | SEC Charges The Kraft Heinz Company and Two Former Executives for Engaging in Years-Long Accounting Scheme". www.sec.gov. Retrieved September 11, 2021.
  44. ↑ Stacey, Kiran; Evans, Judith (September 3, 2021). "Kraft Heinz to pay $62m to settle SEC false accounting charges". Financial Times. London. Retrieved September 11, 2021.
  45. ↑ "Kraft Heinz Fined $62 Million For Phony Accounting". Forbes. September 3, 2021. Retrieved May 30, 2022.
  46. ↑ "The Kraft Heinz Company 2021 Form 8-K". sec.gov. U.S. Securities and Exchange Commission. February 16, 2022. Retrieved February 16, 2022.
  47. ↑ "SEC Form 10-K". December 31, 2022.
  48. 1 2 "Kraft Heinz Financial Statements 2010-2025 | KHC". www.macrotrends.net. Retrieved May 9, 2025.
  49. ↑ "Kraft Heinz commits to higher broiler standards". MEAT+POULTRY. October 27, 2017. Retrieved June 6, 2025.
  50. ↑ "Kraft Heinz makes chicken welfare pledge". FoodNavigator.com. September 16, 2019. Retrieved June 6, 2025.
  51. ↑ "Many global food brands failing on animal welfare, report says". Food Dive. Retrieved June 6, 2025.
  52. ↑ "Court awards companies $17.8 million in egg price fixing lawsuit". Food Business News. Retrieved December 4, 2023.

Further reading

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[edit]
  • Official website
  • Business data for The Kraft Heinz Company:
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