Kraft Heinz Eyes M&A as Packaged Foods Demand Wanes
Deal News | May 20, 2025 | EIN
Kraft Heinz is exploring strategic mergers and acquisitions (M&A) as demand for its packaged foods declines in a tough economic climate. As the company navigates this downturn, it is considering selling some of its brands, notably its Oscar Mayer business, which has drawn interest for a potential $3 billion deal. Concurrently, Berkshire Hathaway, a major stakeholder in Kraft Heinz, has pulled two executives from the company's board, leaving its 27.5% ownership of Kraft unchanged but reducing its influence. CEO Carlos Abrams-Rivera confirmed active M&A pursuits in recent months. This marks a potentially transformative period for Kraft Heinz, which has faced investment challenges, including a significant writedown on its brands.
Sectors
- Food Products
- Private Equity and Investment Management
Geography
- United States – The article focuses on Kraft Heinz, a major American food company, and its strategic considerations.
Industry
- Food Products – Kraft Heinz operates within the Food Products industry, producing a range of packaged foods and snacks.
- Private Equity and Investment Management – Berkshire Hathaway's involvement relates it to the Private Equity and Investment Management sector, especially concerning strategic investments and board influence.
Financials
- $3 billion – Potential valuation of Kraft Heinz's Oscar Mayer business in a possible sale.
- $33 billion – Current market capitalization of Kraft Heinz.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Kraft Heinz | Target company | Company | An American multinational food company exploring M&A opportunities. |
| Berkshire Hathaway | Selling Company/Strategic Investor | Company | A major shareholder in Kraft Heinz, retaining 27.5% ownership but withdrawing from the board. |
| Oscar Mayer | Potential Divestment | Company | A brand under Kraft Heinz that has attracted bidder interest for a potential $3 billion sale. |
| Timothy Kenesey | Board Member | Person | An executive leaving Kraft Heinz's board. |
| Alicia Knapp | Board Member | Person | An executive leaving Kraft Heinz's board. |
| Carlos Abrams-Rivera | Chief Executive Officer | Person | CEO of Kraft Heinz, involved in strategic M&A conversations. |
| Warren Buffett | Chairman of Berkshire Hathaway | Person | Chairman of Berkshire Hathaway overseeing its investment strategy. |
| Greg Abel | Berkshire Hathaway Executive | Person | Expected to become CEO of Berkshire Hathaway in 2026. |