Finance
Berkshire may shed 27.5% Kraft Heinz stake, filing shows
Published by Global Banking and Finance Review
Posted on January 20, 2026
2 min readLast updated: January 20, 2026
Quick Summary
Berkshire Hathaway may sell its 27.5% stake in Kraft Heinz due to disappointing returns. The move follows Kraft Heinz's decision to split into two companies.
Berkshire Hathaway Considers Selling 27.5% Stake in Kraft Heinz
Berkshire Hathaway's Investment in Kraft Heinz
By Jonathan Stempel and Jessica DiNapoli
Background of the Investment
Jan 20 (Reuters) - Berkshire Hathaway may shed its 27.5% stake in Kraft Heinz, according to a regulatory filing, and exit a more than decade-old investment that did not work out for the conglomerate's Chairman Warren Buffett.
Recent Developments
Kraft Heinz, whose products include Heinz ketchup and Oscar Mayer meats, on Tuesday filed a prospectus supplement with the U.S. Securities and Exchange Commission "to register the potential resale" by Berkshire of its 325.4 million share stake.
Market Reaction
Berkshire is by far the largest shareholder of Kraft Heinz, whose merger it helped engineer in 2015 with Brazilian private equity firm 3G Capital. That firm divested its Kraft Heinz stake in 2023.
The combination of the former Kraft Foods and H.J. Heinz proved disappointing, and the combined company said in September it would split in two later this year.
Buffett told CNBC at the time that he and Greg Abel, then a Berkshire vice chairman and now its chief executive, disapproved of the split.
Kraft Heinz shares closed up 23 cents at $23.76 on Tuesday, making Berkshire's stake worth about $7.7 billion. The shares fell 4.9% to $22.59 in after-hours trading following the filing of the prospectus supplement.
Berkshire did not immediately respond to a request for comment.
The Omaha, Nebraska-based conglomerate wrote down its Kraft Heinz investment by $3.76 billion in August, on top of a $3 billion writedown in 2019.
In a statement, Kraft Heinz said: “Our focus continues to be on maximizing long-term value for our business and for all shareholders."
Kraft Heinz, which has offices in Chicago and Pittsburgh, has struggled following years of cost-cutting and underinvestment, while fending off competition from healthier and supermarket-branded alternatives.
It is among the worst-performing companies in the U.S. food sector, where sales have slowed as consumers pull back on spending following years of price hikes.
Kraft Heinz installed Steve Cahillane as its new CEO on January 1, the same day Abel became Berkshire's chief.
Cahillane was previously CEO of the former Kellogg cereal and snack maker, which also split into separate companies. Both were later acquired.
(Reporting by Jonathan Stempel in New York; Editing by Jamie Freed)
Key Takeaways
- •Berkshire Hathaway may sell its 27.5% stake in Kraft Heinz.
- •The investment has been disappointing for Warren Buffett.
- •Kraft Heinz plans to split into two companies.
- •Berkshire's stake is valued at approximately $7.7 billion.
- •Kraft Heinz faces competition and market challenges.
Frequently Asked Questions about Berkshire may shed 27.5% Kraft Heinz stake, filing shows
1What is equity?
Equity refers to the ownership interest in a company, represented by shares of stock. It signifies the value of an owner's stake in the company after all liabilities are deducted.
2What is investment?
Investment is the act of allocating resources, usually money, in order to generate income or profit. This can include purchasing stocks, bonds, real estate, or other assets.
3What are financial markets?
Financial markets are platforms where buyers and sellers engage in the trade of assets such as stocks, bonds, currencies, and derivatives. They facilitate the flow of capital and liquidity.
