Kraft Heinz names new CEO to oversee its breakup

Steve Cahillane, the food and beverage industry veteran behind Kellogg’s recent split, has been tapped by Kraft Heinz to manage its pending breakup.

The packaged food giant with dual headquarters in Pittsburgh and Chicago announced Cahillane’s hire as CEO on Tuesday. He’ll start Jan. 1, replacing Carlos Abrams-Rivera after about two years in the role.

Cahillane is tasked with recreating his success dividing Kellogg’s in 2023 into a standalone cereal company by the same name and snack food powerhouse Kellanova, which Mars acquired last week for nearly $36 billion.

Kraft Heinz hopes to split in two in the second half of next year, with one company focused on high-performing sauces and spreads and another loaded with less lucrative brands.

The move will undo its 2015 merger, now widely viewed as a strategic error after it failed to revive sluggish sales.

“I’ve devoted my entire career to building brands, and the opportunity to do the same with Kraft Heinz’s iconic portfolio is a dream come true,” Cahillane said in a statement. “I’m confident the planned separation will accelerate the company’s ability to compete and win in today’s environment and unlock the immense opportunity in front of us.”

Cahillane’s more than 30-year career has also included C-suite roles at Anheuser-Busch InBev, the Coca-Cola Co. and the Nature’s Bounty Co.

Once the Kraft Heinz reorganization is complete, Cahillane will become head of the sauces and spreads company, temporarily named Global Taste Elevation Co. The current company’s board will soon start a global search for someone to lead the other spin-off, known for now as North American Grocery Co.

John Cahill, Kraft’s pre-merger CEO, will take over as board chairman as part of the leadership shuffle. He replaces Miguel Patricio, who was Kraft Heinz’s top executive from 2019 to 2023.

Abrams-Rivera will stick around through March 6 as an advisor.

Kraft Heinz previously said it had no plans to move either of its headquarters. Though the company has a corporate presence in Pittsburgh, it has not manufactured products in the city for 25 years.

Tuesday’s announcements may have slightly buoyed investors’ view of the company. As of 11 a.m., shares of Kraft Heinz on the Nasdaq stock exchange were up just under 1% on the day, though the stock remained down nearly 20% year-to-date.