Kraft Heinz announced on Tuesday that it is currently reviewing potential strategic transactions in an effort to reverse a decline in sales. The company did not disclose any specific details regarding the review process, such as a timeline for decision-making or whether it will result in any transaction.
CEO Carlos Abrams-Rivera stated, “At Kraft Heinz, our priority has always been to produce high-quality, delicious food for all consumers and to focus on driving long-term growth and value creation. Over the past few months, we have been exploring potential strategic transactions to enhance shareholder value.”
The food manufacturer, which reported net sales of $26 billion in the previous year, has been actively innovating its product portfolio to achieve $2 billion in additional net sales by 2027. This includes expanding key brands like Philadelphia into cream cheese frosting and Crystal Light into the alcohol market with a hard seltzer line.
Despite these efforts, Kraft Heinz has experienced a decline in total revenue for six consecutive quarters. The company expects organic sales to decrease by 1.5% to 3.5% in the 2025 fiscal year, compared to the previous year. This trend is attributed to factors such as inflation impacting consumer spending habits and a shift towards healthier food choices.
Kraft Heinz also announced that Warren Buffett’s Berkshire Hathaway will no longer have seats on its board. Two board members, Timothy Kenesey and Alicia Knapp, have resigned due to their association with Berkshire Hathaway. Their departure was stated to be unrelated to any disagreements with the company’s management or practices.