The Kraft Heinz Company to Separate Into Two Independent Public Companies

Paul, Weiss is advising The Kraft Heinz Company on its plan to separate into two independent, publicly traded companies through a tax-free spinoff. The transaction is expected to close in the second half of 2026, subject to customary closing conditions.

One of the yet unnamed companies, currently called Global Taste Elevation Co., is expected to feature a portfolio including billion-dollar brands Heinz, Philadelphia and Kraft Mac & Cheese. Global Taste Elevation earned $15.4 billion in net sales last year, mainly from sauces, spreads and seasonings.

The other company, North American Grocery Co., is expected to feature billion-dollar brands Oscar Mayer, Kraft Singles and Lunchables, along with a scaled portfolio of grocery store staples. North American Grocery earned about $10.4 billion in net sales last year, most of which came from brands that are No. 1 or 2 in their respective categories.

The Paul, Weiss team is led by partners Stan Richards, Jeffrey Marell and Jeffrey Samuels, and includes corporate partners Carmen Lu and Mohammed Alvi; tax partners Robert Killip and Cian O’Connor and counsel Alyssa Wolpin; antitrust partner Nicole Kar; executive compensation partners Matthew Friestedt and Jarrett Hoffman; and intellectual property partner Claudine Meredith-Goujon and counsel Elana Bensoul.