Breakups are often inevitable—even for consumer packaged goods giants. Kraft Heinz is reportedly on the brink of consciously uncoupling after a decade together. The purveyors of Kraft Mac & Cheese and Heinz Ketchup, among other brands that dominate the grocery aisles, were mashed together in 2015 under a deal arranged by investors 3G Capital and Warren Buffett. Ten years later, the grocery landscape has changed considerably, with many consumers focused on how processed their food is and an FDA seeking to “make America healthy again”—and the company is set to undergo another structural shift. This time, some of the Kraft grocery brands may move under a separate company that could be worth up to $20 billion, according to the Wall Street Journal, while keeping condiment-aisle staples like the titular ketchup and Grey Poupon under the same roof. “As announced in May, Kraft Heinz has been evaluating potential strategic transactions to unlock shareholder value,” Lynsey Elve, a Kraft Heinz spokesperson, wrote in a statement to Marketing Brew. “Beyond that, we do not comment on rumors or speculation.” Should Kraft Heinz truly decouple, a move that will likely take years to be fully fleshed out, brand consultants and ad agency execs told Marketing Brew that the move stands to play a major role in the futures of the vast portfolio of CPG brands, as well as affect their approaches to advertising under new corporate structures. Keep reading here on Marketing Brew.—KM |