Published by Global Banking & Finance Review®
Posted on December 17, 2025
3 min readLast updated: January 20, 2026
Add as preferred source on GoogleKraft Heinz appoints Steve Cahillane as CEO to manage a corporate split and potential asset sales, aiming for strategic growth.
By Jessica DiNapoli and Abigail Summerville
NEW YORK, Dec 17 (Reuters) - Kraft Heinz's decision to tap Steve Cahillane - the dealmaker who steered Kellogg through one of the packaged food industry's biggest breakups - signals the ketchup maker may be positioning itself for major asset sales as it pushes ahead with its own split, according to bankers, analysts and a former executive.
Kraft Heinz announced the CEO change while in the midst of separating its more than 200 brands into two companies. Shares of the Jell-O maker, among the worst performers in packaged food, are down 19% this year, versus a rise of almost 3% in the broader S&P 500 Consumer Staples index.
Former Kellogg CEO Cahillane, appointed to run Kraft Heinz on Tuesday, oversaw the separation of the Corn Flakes and Pringles maker about two years ago, which later saw privately-held Mars scooping up the faster-growing snacks division, Kellanova, at a 33% premium.
With Cahillane on board, Kraft Heinz may be hoping to woo a suitor for its sauces and condiments business, which is expected to have higher margins than its grocery division, according to analysts.
"It's clear they're signaling to the market and potential buyers that they're in play," said Bill Johnson, the CEO of H.J. Heinz until 2013, when it was taken private by Warren Buffett's Berkshire Hathaway and Brazil-based 3G Capital. "We have someone who knows how to do these deals.
"It's (also) an acknowledgement the management team needed upgrading. In case they can't sell the company, they need someone who can operate it better than it's been operated," Johnson added.
SHOPPERS CUT BACK
Sales of packaged food in the United States have faltered as shoppers cut back due to sky-high prices, and try newer brands with less processing, hurting Kraft Heinz and its rivals like Conagra.
Kraft Heinz, created in a 2015 megadeal, however, has particularly struggled with well-worn brands like Crystal Light drinks, Lunchables meal kits and Kraft Mayo.
Cahillane will also lead Kraft Heinz's condiments and spreads business, which includes Heinz ketchup and Philadelphia cream cheese, after the split, set to be finalized at the end of 2026.
That division is expected to command a higher multiple than Kraft Heinz's overall because of the higher margins, exposure to international markets and potential faster growth. Kraft Heinz's multiple lags peers including General Mills , Mondelez and Conagra.
This year ushered in a crop of major deals for consumer-facing companies like Kraft Heinz, which have faced blowback from shoppers on high prices and wrestled with increasing costs from tariffs.
The administration of U.S. President Donald Trump is also smoothing the path for deal-making, in contrast to his predecessor former President Joe Biden.
Huggies diaper maker Kimberly Clark announced plans to acquire Kenvue, which markets pain reliever Tylenol, for nearly $50 billion last month. European confectioner Ferrero bought Kellogg's smaller cereal unit, W.K. Kellogg, for $3.1 billion earlier this year, another success for Cahillane.
To be sure, Max Gumport, a senior analyst at BNP Paribas, said in a research note that he struggles to see logical buyers for Kraft Heinz's business after the split.
Kraft Heinz failed to sell Oscar Mayer last year. It also attempted to sell coffee brand Maxwell House.
(Reporting by Jessica DiNapoli in New YorkEditing by Nick Zieminski)
An asset sale is the sale of a company's assets, which can include physical assets like equipment or intangible assets like patents, often to raise capital or streamline operations.
Corporate strategy refers to the overall plan for a company, outlining how it will achieve its goals and objectives, including decisions on mergers, acquisitions, and asset management.
Consumer perception is how customers view a brand or product, influenced by their experiences, marketing, and the overall reputation of the company.
Financial markets are marketplaces where assets such as stocks, bonds, currencies, and derivatives are traded, facilitating the exchange of capital and investment.
Investment refers to the allocation of resources, usually money, into assets or projects with the expectation of generating a return or profit over time.
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