Kraft Heinz Separation Overview - Kraft Heinz plans to separate into two independent companies: Global Taste Elevation Co and North American Grocery Co[4, 25] - The separation aims to allow each company to dedicate resources, reduce complexity, and align capital allocation with strategic ambitions[26, 27] - The spin-off is expected to be completed in the second half of 2026 and is expected to be tax-free to Kraft Heinz and its shareholders[66] Global Taste Elevation Co - Global Taste Elevation Co had net sales of $154 billion in 2024 and adjusted EBITDA of $40 billion[28] - More than 75% of net sales are from market-leading brands with approximately 90% U S household penetration[41] - The company has a 7% 5-year CAGR in Taste Elevation and a 10% 5-year CAGR in Away From Home organic net sales[43] North American Grocery Co - North American Grocery Co had net sales of $104 billion in 2024 and adjusted EBITDA of $23 billion[28] - Nearly 75% of net sales are from market-leading brands[53] - The company has an opportunity to pursue whitespace in Away From Home, with industry average Away From Home sales at 19% compared to the company's 4%[57] Strategic Rationale - Portfolio complexity is correlated to lower growth rates[22] - The separation will minimize operational overlap and replication, with anticipated dis-synergies of up to $300 million, a substantial portion of which can be mitigated in the near term[58] - The company realized annual efficiencies of approximately $35 million from 2022 to 2024 through shared services efficiencies[13]