(Reuters) -Packaged food maker Kraft Heinz is preparing to break itself up, the Wall Street Journal reported on Friday, citing people familiar with the matter.

The company is looking to spin off a large chunk of its grocery business, including many Kraft products, into a new entity that could be valued at as much as $20 billion on its own, the report said.

This move would leave the company with housing goods such as sauces and spreads such as Heinz's namesake ketchup and Dijon mustard brand Grey Poupon.

Shares of the company were up 2.5% in afternoon trading.

Kraft Heinz declined to comment on the report, but referred to its May announcement of evaluating potential strategic transactions to unlock shareholder value.