Core Viewpoint - Kraft Heinz Company is nearing a split plan to separate its grocery business from its faster-growing condiment business, with an announcement expected next week [1] Group 1: Split Plan Details - The grocery business, which includes products like Kraft Macaroni & Cheese and Capri Sun, is estimated to be valued at approximately $20 billion [1] - The remaining business will focus on ketchup and sauces, forming a smaller independent company [1] - This split represents a reversal of the 2015 merger between Kraft Foods Group and H.J. Heinz Company, which created the third-largest food and beverage company in the U.S. [1] Group 2: Historical Context - The 2015 merger was driven by Berkshire Hathaway and 3G Capital, with Kraft shareholders owning 49% and Heinz shareholders owning 51% of the combined entity [1] - Initially, the combined companies had revenues of about $28 billion, which later declined to $6.35 billion [1][2] Group 3: Financial Performance and Challenges - Following the merger, Kraft Heinz initiated cost-cutting measures and attempted acquisitions, including a failed $143 billion bid for Unilever in 2017 [2] - The company faced declining sales due to shifting consumer preferences towards healthier food options, leading to a $15 billion impairment charge for its Kraft and Oscar Mayer brands [2] - The stock price of Kraft Heinz has dropped 61% since the merger, while the S&P 500 has increased by 237% during the same period [2] Group 4: Current Situation and Analyst Opinions - Rising production costs have further eroded Kraft Heinz's profitability, with projections indicating losses by 2025 [4] - Analysts express skepticism about the split's potential to create value, with concerns that it may result in two struggling companies [4] - Since rumors of the split emerged, Kraft Heinz's stock has only risen by 3% [4]