Core Viewpoint - Buffett expressed disappointment over Kraft Heinz's decision to split, stating that breaking up the company will not resolve its fundamental issues, despite the company's leadership supporting the split as a means to address growth challenges [1][7][9]. Company Summary - Kraft Heinz announced it will split into two independent publicly traded companies, marking the end of the $46 billion merger led by Berkshire Hathaway and 3G Capital in 2015 [5]. - The split will create one company focused on sauces, condiments, and shelf-stable meals with annual sales of $15.4 billion, and another company that includes brands like Oscar Mayer and Kraft Singles with annual revenue of $10.4 billion [6]. - The split is expected to be completed in the second half of 2026 [6]. - Buffett, as the largest shareholder with a 27.5% stake, has not sold any shares since the merger and has previously acknowledged a misjudgment regarding the investment, which led to a $3 billion impairment loss in 2019 [8]. Industry Context - The split of Kraft Heinz is part of a broader trend in the food and beverage industry, where several companies are undergoing similar restructuring efforts, such as Kellogg's recent split into two companies [12]. - The food industry is facing pressures from health-conscious consumers and regulatory scrutiny, prompting significant changes in business strategies [13].

Core Viewpoint - The decision by Kraft Heinz to split into two independent companies marks the end of a merger led by Warren Buffett's Berkshire Hathaway and 3G Capital, which was valued at $46 billion in 2015. Buffett expressed disappointment, believing that the split will not resolve the company's fundamental issues [1][3][4]. Company Summary - Kraft Heinz announced its plan to split into two companies: one focusing on sauces, condiments, and shelf-stable meals with annual sales of $15.4 billion, and the other including brands like Oscar Mayer and Kraft Singles with annual revenue of $10.4 billion. The transaction is expected to be completed in the second half of 2026 [3]. - Buffett, as the largest shareholder with a 27.5% stake, has not sold any shares since the merger and acknowledged that the merger has not performed well. He stated that splitting the company will not necessarily solve its problems [4][5]. - The leadership of Kraft Heinz supports the split, arguing that the current complex structure hinders effective capital allocation and prioritization of projects. The split aims to enhance focus and resource allocation for each brand [7]. Industry Context - The split of Kraft Heinz is part of a broader trend in the food and beverage industry, where several companies have undergone similar restructuring. For instance, Kellogg split its cereal business in 2023, and Keurig Dr Pepper announced the reversal of its 2018 merger [8]. - The food industry is facing pressures from health advocates and regulatory scrutiny, prompting a significant transformation as consumers become more health-conscious and demand less processed food [8].