Kraft Heinz split may come too late amid rising health backlash
Kraft Heinz’s decision to split into two companies — one focused on sauces and condiments, the other on groceries — may not be enough to revive its struggling brands, according to analysts and former employees.
The move comes as the food giant faces mounting pressure from changing consumer tastes and the rise of the Make America Healthy Again (MAHA) movement, led by U.S. Health Secretary Robert F. Kennedy Jr. MAHA is pushing for tougher rules on ultra-processed foods, arguing that artificial ingredients contribute to chronic diseases. California is preparing to vote on a bill regulating such foods, while other states are considering similar measures, adding to the company’s challenges, News.Az reports, citing Reuters.
For years, Kraft Heinz has struggled to shake its reputation as a maker of unhealthy processed products. Former employees say executives missed key opportunities to appeal to health-conscious consumers, such as by replacing high-fructose corn syrup in Heinz ketchup with cane sugar. While the company introduced its “Simply Heinz” line and acquired the natural condiment brand Primal Kitchen, these steps have done little to alter public perception.
Financial results have reflected this struggle. Kraft Heinz’s organic net sales have fallen for seven consecutive quarters, and its shares are down nearly 14% this year, underperforming its peers. Flagship products like Heinz ketchup and Kraft mac & cheese are losing ground to fresher, health-oriented competitors such as Rao’s Homemade.
Industry experts remain skeptical about whether the split will help. Food analyst Nicholas Fereday said dividing the business “doesn’t change the fundamentals,” while former Heinz CEO Bill Johnson argued that companies like Kraft Heinz have failed to innovate or give consumers a reason to believe their products are improving.
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