Kraft Heinz to split into two firms, unwinding 2015 merger

Kraft Heinz said Tuesday it will split into two publicly traded companies, unwinding the 2015 merger that created one of the world’s largest foodmakers as the business grapples with sluggish sales and shifting consumer tastes. The company said the separation will carve out a faster-growing sauces and spreads group from a slower-growing North American grocery business and is expected to be completed in the second half of next year, pending regulatory approval.

Under the plan, the working-titled Global Taste Elevation Co will house global brands and sauces, including Heinz ketchup, Philadelphia cream cheese and Kraft Mac & Cheese. A second unit, North American Grocery Co, will hold legacy grocery staples such as Oscar Mayer, Kraft Singles and Lunchables. Carlos Abrams-Rivera, Kraft Heinz’s chief executive, will lead the North American Grocery business while the company searches for a leader for the sauces group, officials said. The company also named Centerview Partners as its sole financial adviser on the transaction.

Executives and analysts framed the split as an effort to simplify the company’s portfolio and unlock shareholder value after years of underperformance. Miguel...