Kraft Heinz announced that former Kellanova chief executive Steve Cahillane will take the helm of its newly created Global Taste Elevation unit, a division that will house high‑growth brands such as Heinz, Philadelphia and Kraft Mac & Cheese. Cahillane will begin his role on January 1 2026 and will lead the snack‑focused business that will become one of two publicly traded entities after the company’s planned split, which is expected to be completed in the second half of 2026.
The split is a strategic effort to separate Kraft Heinz’s grocery staples business from its snack‑centric portfolio, allowing each unit to focus on distinct growth drivers and operational priorities. By appointing Cahillane—who steered Kellanova from a cereal‑centric model to a global snacking powerhouse—Kraft Heinz signals its intent to accelerate organic growth in the snack segment while maintaining a disciplined approach to cost management in the staples division.
In its most recent quarterly report, Kraft Heinz reported adjusted earnings per share of $0.61, beating analyst consensus of $0.57 by $0.04 or 7.0%. The beat was largely driven by strong cost control and a favorable product mix that offset a 2.3% year‑over‑year decline in net sales to $6.24 billion. Revenue fell because North America sales dropped 3.8% amid price‑sensitive consumer behavior, while International Developed Markets grew 1.6% and Emerging Markets increased 3.8%, partially offsetting the domestic weakness.
Operating margin expanded to 16.4% from 16.0% in the prior quarter, reflecting improved pricing power in the snack segment and disciplined expense management. The company’s full‑year 2025 guidance was lowered, citing continued uncertainty in the consumer staples sector and the need to preserve margin in a high‑inflation environment. Management emphasized that the split will unlock value by allowing each business to pursue tailored investment strategies and operational efficiencies.
Management comments underscored the strategic rationale: Carlos Abrams‑Rivera, the outgoing CEO, noted that the split “will enable each entity to focus on its core strengths and accelerate growth.” Cahillane stated that his priority will be to “fix the lack of organic growth” that has kept the company’s valuation below its peers, while also leveraging his experience in scaling snack brands to drive margin expansion and market share gains. Analysts have expressed mixed views, with some raising and others lowering their outlooks, reflecting the balance between optimism about the new leadership and caution over the company’s current revenue trajectory.
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