Kraft Heinz Co. is considering a breakup plan nearly a decade after its 2015 merger orchestrated by Warren Buffett and 3G Capital Partners. The company is exploring spinning off a large portion of its grocery business, including many Kraft products, into a separate entity potentially valued at up to $20 billion. This spin-off would leave Kraft Heinz with its sauces and spreads division, including Heinz and Grey Poupon brands. The potential breakup comes amid sluggish sales, changing consumer preferences, and underperformance of Kraft Heinz shares, which have declined by about 60% since the merger. Analysts view this move as part of a broader trend in the food industry toward strategic restructuring and unlocking shareholder value, similar to recent spinoffs by other major food companies like Kellogg. The breakup is seen as a risky but necessary effort to revive slower-growing brands such as Velveeta cheese and to reverse the challenges faced since the merger. Warren Buffett had initially praised the merger as an opportunity to unite iconic brands, but the current plans to split the company mark a rare setback for the investor. Kraft Heinz shares rose modestly following reports of the breakup plan.
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