Kraft Heinz Co. is weighing a breakup that would separate a large portion of its grocery portfolio into a new company valued at up to $20 billion, according to people familiar with the deliberations cited by the Wall Street Journal. The parent would retain its higher-margin sauces and spreads business, including flagship Heinz ketchup and Grey Poupon mustard, while the new entity would house many Kraft-branded grocery lines. The board and external advisers are examining several strategic options and have not approved a final plan, the report said. Management has been under pressure to revive growth as consumers pivot toward fresher and less-processed foods and as store-brand competition intensifies. A split would follow similar moves in the packaged-foods sector, such as the 2023 division of Kellogg’s cereal and snack operations. Kraft Heinz shares climbed about 3% after the report was published Friday afternoon. The possible breakup comes almost a decade after the $50 billion merger of Kraft and Heinz, engineered by Warren Buffett’s Berkshire Hathaway and Brazil’s 3G Capital. Since peaking in 2017, the company’s market capitalization has fallen more than 60%, prompting repeated calls from investors to unlock value through divestitures or strategic transactions.