Kraft Heinz Might Break Itself in Two

The Wall Street Journal is out with a major scoop in the world of business: It says Kraft Heinz, the food giant behind iconic brands like Oscar Mayer meats and Heinz ketchup, is preparing to split itself in two. The move comes a decade after the high-profile merger of Kraft and Heinz and as the company faces headwinds including inflation, slipping profits, and stiffer competition, per Bloomberg. Much is unclear about how things would shake out, but one of the resulting companies would likely focus on sauces and spreads, including Heinz ketchup and Grey Poupon mustard.

The company is considering spinning off much of its grocery business—including several Kraft-branded products—into a new entity that could be valued around $20 billion, according to the Journal. The company aims for the combined value of the two separate firms to surpass its current market capitalization of $31 billion. One factor in all of the above is that consumers no longer have as big a taste for things such as processed meats and cheeses. Execs have not confirmed the story, but they're not denying it, either. "As announced in May, Kraft Heinz has been evaluating potential strategic transactions to unlock shareholder value," says a spokesperson.