Big Food Goes Lean: Kraft Heinz Breakup and Kellogg Split Signal Industry-Wide Divestitures
Kraft Heinz plans to split into two separately traded companies, undoing its 2015 megamerger, while Kellogg’s split into Kellanova and WK Kellogg has preceded a wave of divestitures in the sector. With slowing demand, price pressure, and tighter regulation, consumer-packaged goods giants are shedding underperforming brands and refocusing on core assets. Bain projects about 42% of consumer-products M&A in the coming years will involve asset sales, and smaller deals with insurgent brands or private-labels are rising as the industry rethinks growth strategies. Berkshire Hathaway is reportedly considering exiting its Kraft Heinz stake, and the trend mirrors shifts seen in other industries and media, signaling a leaner, more modular Big Food landscape.