In a major leadership shake-up ahead of a historic corporate split, global food giant Kraft Heinz has announced the appointment of Steve Cahillane as its new Chief Executive Officer. He will officially take the helm on January 1, 2026, steering the company through its planned division into two separate publicly traded entities later that year.
A New Leader for a New Chapter
The appointment is directly tied to the massive restructuring plan unveiled by the company in September 2024. Cahillane is set to lead the Global Taste Elevation Co., which will house the company's most iconic international brands. This portfolio includes household names like Kraft Mac & Cheese, Philadelphia cream cheese, and Heinz ketchup and sauces.
Expressing his enthusiasm, Cahillane stated, "Like millions of people around the world, I have a deeply personal connection to the Kraft Heinz brands, dating back to my childhood." He added, "I've devoted my entire career to building brands, and the opportunity to do the same with Kraft Heinz's iconic portfolio is a dream come true."
The Great Split: Two Future Food Giants
The second company resulting from the split will be named the North American Grocery Co. This entity will focus on a different set of staple brands, including Maxwell House coffee, Oscar Mayer meats, Kraft Singles, and Lunchables. The leadership for this division is yet to be announced.
This strategic move comes exactly a decade after the merger of Kraft and Heinz created one of the world's largest food manufacturers. The company believes the separation will allow each new entity to be more agile, improve operational efficiency, and better allocate resources to cater to distinct market demands.
Navigating a Changing Market Landscape
The restructuring is seen as a critical response to significant challenges in the modern food industry. Consumer preferences have been shifting steadily towards less processed, healthier options, impacting sales of legacy products like Velveeta cheese and Kool-Aid. The company has also incurred additional costs in reformulating products to remove artificial ingredients.
Furthermore, Kraft Heinz has faced intense pressure from lower-priced private-label alternatives offered by supermarkets, making it harder to differentiate its branded products on shelves.
Miguel Patricio, Chairman of the Board, strongly endorsed the new CEO appointment. He said, "His track record and experience in the industry are unparalleled and will be invaluable as we embark on this next chapter."
A Proven Track Record
Cahillane brings highly relevant experience to the table. He previously managed a similar spin-off at Kellogg Co. in 2023, leading Kellanova, which owned popular snack brands like Cheez-Its, Pringles, and Pop-Tarts. That company was later acquired by Mars Inc., while the cereal division, WK Kellogg Co., was purchased by Ferrero.
His extensive resume also includes executive roles at The Nature's Bounty Co., Coca-Cola Co., and the world's largest brewer, AB InBev.
The current CEO, Carlos Abrams-Rivera, who began his tenure in January 2024, will support the transition by moving into an advisory role until his departure in March 2026. The market reacted neutrally to the news, with the company's shares holding steady during midday trading following the announcement.
