Kraft Heinz is taking the macaroni & cheese out of its ketchup business in mega-split after infamous merger

The breakup comes as consumers turn away from processed foods and toward healthier options

Kraft Heinz is taking the macaroni & cheese out of its ketchup business in a mega-split after its infamous 2015 merger, according to a new report.

The mammoth packaged foods company plans to spin off a big portion of its business, which includes Kraft products, into a new firm,The Wall Street Journal reported Friday, citing people familiar.

The breakup comes as consumers turn away from processed foods and toward healthier options.

Signs of trouble in grocery paradise began to emerge as early as 2019, when Kraft Heinz reduced the value of Kraft and Oscar Mayer meat products by $15 billion, the Journal reported. The company is currently worth $31 billion as one entity.

Kraft Heinz is taking the macaroni & cheese out of its ketchup business in a mega-split after its infamous 2015 merger, according to a new report (Brandon Bell/Getty Images)

The mammoth packaged foods company reportedly plans to spin off a big portion of its business, which includes Kraft products, into a new firm (Michael M. Santiago/Getty Images)

If the company went through with its plans, the new firm that would house Kraft products could be valued at as much as $20 billion, the Journal’s sources say. The hope with the breakup is that the two firms would be worth more in total than the mega-company is currently worth.

The Journal’s sources say the company’s plans could be finalized in the coming weeks, but its board has yet to agree on a final decision.

Kraft Heinz is tight-lipped about any specifics, with a company spokesperson telling the Journal, “As announced in May, Kraft Heinz has been evaluating potential strategic transactions to unlock shareholder value.”

At the time of the Kraft Heinz merger, Forbes reported it was expected to be the third-largest food company in the U.S. and fifth-largest in the world.

After a decade in business together, ketchup and macaroni and cheese seem to have note been a good combination, at least in terms of stocks.

In late September 2015, the company’s stock sat at $70.58 a share, according to data from the Journal. As of the stock market’s close Friday afternoon, it was at $27.14, MarketWatch reports.

Kraft Heinz’s plans could be finalized in the coming weeks, but its board has yet to agree on a final decision, the new report says (Scott Olson/Getty Images)