Kraft Heinz has appointed industry veteran Steve Cahillane as its new Chief Executive Officer.
The former Kellogg chief has been tasked with a singular, massive objective: guiding the packaged food giant through its planned separation into two standalone companies.
Cahillane, 60, is set to assume the role on January 1. He succeeds Carlos Abrams-Rivera, who took the helm in early 2024. Abrams-Rivera will transition to an advisory role until his departure on March 6.
A Strategic Split
The leadership shakeup comes as Kraft Heinz prepares to execute a major restructuring plan announced in September. After years of operating as a single entity, the conglomerate will divide its portfolio into two distinct businesses by the second half of 2026:
- Sauces and Spreads: This unit, often referred to as “Taste Elevation,” will house powerhouse brands like Heinz Ketchup. It generated approximately $15.4 billion in sales in 2024.
- Grocery and Processed Foods: This company will focus on ready-meal brands such as Oscar Mayer and currently generates about $10.4 billion in annual revenue.
Cahillane intends to lead the sauces and spreads unit post-split. While Abrams-Rivera was initially slated to lead the grocery business, the board has now initiated a new search for a CEO to head that division.
The Turnaround Mission
Cahillane arrives at a critical juncture for Kraft Heinz. The company is battling to regain investor confidence after a prolonged slump.
Shares have plummeted roughly 75% from their 2017 peak and fell nearly 30% during Abrams-Rivera’s brief tenure. The company’s valuation currently trails significantly behind industry peers such as PepsiCo, Coca-Cola, and Mondelez.
In recent statements, Cahillane emphasized that his priority is fixing the lack of organic growth, a key factor behind the stock’s discounted trading price. In October, the company was forced to cut its annual sales and profit targets as inflation-weary consumers increasingly shifted toward cheaper private-label alternatives.
The “Split” Specialist
The board’s choice of Cahillane signals a desire for experienced hands during complex transitions.
Cahillane brings a proven track record of managing corporate breakups. He successfully led Kellogg Company through its 2023 separation, creating Kellanova (the snacking business) and WK Kellogg Co (the cereal business). He subsequently oversaw the sale of Kellanova to Mars for roughly $36 billion earlier this year.
His resume also includes leadership stints at global heavyweights Coca-Cola and AB InBev.
Market analysts suggest that appointing a veteran of Cahillane’s caliber is a move to minimize execution risk, ensuring the high-value sauces unit emerges as a coherent, investor-ready entity.
Headwinds: Health and Habits
Beyond internal restructuring, the new CEO faces broader industry challenges.
Packaged food companies are grappling with shifting consumer behaviors, including the rising use of GLP-1 weight-loss drugs. Additionally, political and social movements advocating for stricter scrutiny of artificial ingredients in food are gaining momentum.
Cahillane has acknowledged that the rise of weight-loss medications will likely impact food portfolios moving forward.
However, he remains fully supportive of the split, stating that he looks forward to executing the plan to reduce operational complexity and sharpen the focus of both new entities.
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