Kraft Heinz says to split into two companies

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Packaged-food giant Kraft Heinz said on Tuesday that it will separate into two firms, dividing up famous brands including the US company's Philadelphia cream cheese.

Its board of directors has "unanimously approved a plan to separate the company into two independent, publicly traded companies through a tax-free spin-off," the company said in a statement.

The split will "provide both companies with more strategic and operational focus" and enable them to "reduce operational complexity", the firm added.

Kraft Heinz was born of the 2015 merger of Kraft Foods and Heinz.

Kraft has built its reputation on products such as ready-to-eat macaroni and cheese, while the Oscar Mayer brand is known for deli meats and hot dogs, and Heinz for its ketchup and other condiments.

Kraft Heinz CEO Carlos Abrams-Rivera will become CEO of North American Grocery Co., a portfolio of brands with $10.4 billion in 2024 net sales.

The other company, Global Taste Elevation Co., will include Heinz, Philadelphia and Kraft Mac & Cheese with $15.4 billion in net sales last year.

The transaction is expected to close in the second half of next year, the company added.