12:31 PM EDT, 09/02/2025 (MT Newswires) -- Kraft Heinz ( KHC ) said on Tuesday it will split into two public companies to improve brand performance and reduce operational complexity, a move that left Berkshire Hathaway ( BRK/A ) (BRK.A, BRK.B) Chief Executive Warren Buffett disappointed.

One of the two companies will include brands such as Heinz, Philadelphia and Kraft Mac & Cheese. The other will focus on North American staples and be home to brands like Oscar Mayer, Kraft Singles and Lunchables. The companies' names will be determined later.

Buffett, who helped engineer the merger between H.J. Heinz and Kraft Foods Group in 2015 to create Kraft Heinz ( KHC ), said he is "disappointed" in the planned breakup, CNBC reported. Berkshire Hathaway ( BRK/A ) reportedly has a 27.5% stake in the company.

Berkshire's representatives stepped down from Kraft Heinz ( KHC )' board in May.

Kraft Heinz ( KHC )' shares declined 6.7% in Tuesday trade, and have lost 26% in the past 12 months.

The business that will primarily include Kraft Heinz's ( KHC ) shelf-stable meals posted $15.4 billion in net sales last year, with sauces, spreads and seasonings making up 75% of the total, the company said. The North American grocery business, which had $10.4 billion in revenue last year, will be led by Kraft Heinz ( KHC ) Chief Executive Carlos Abrams-Rivera upon completion of the proposed split.

"The complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas," Miguel Patricio, executive chair of the Kraft Heinz ( KHC ) board, said in a statement. "By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value."

The move follows Kraft Heinz's ( KHC ) announcement in May that it was evaluating potential strategic transactions to unlock shareholder value.

The company expects the potential split to be completed in the second half of next year, subject to final board approval.

In July, Kraft Heinz ( KHC ) posted second-quarter adjusted earnings that fell 12% annually to $0.69 per share as revenue fell 1.9% to $6.35 billion, driven by weakness in North America. The company at the time affirmed guidance for organic sales to be down 1.5% to 3.5% in fiscal 2025.

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