Kraft Heinz to explore ‘strategic transactions’ as sales decline

Kraft Heinz said Tuesday it is evaluating “potential strategic transactions” as the ketchup and Lunchables maker looks to turn around a decline in sales. 

The CPG giant did not provide additional details, including a timetable for a decision or whether the review will result in a transaction.

“At Kraft Heinz, our goal has always been to make high-quality, great-tasting food for all and to keep consumers at the forefront of all we do, enabling us to drive profitable long-term growth and value creation,” CEO Carlos Abrams-Rivera said in a statement. “Consistent with this goal, over the past several months we have been evaluating potential strategic transactions to unlock shareholder value.”

The food manufacturer, which reported net sales of $26 billion last year, has been aggressively innovating its portfolio as it aims to generate $2 billion in incremental net sales by 2027. It’s taken several of its key brands into closely related and trendy categories, bringing Philadelphia into cream cheese frosting and Crystal Light into the alcohol space with a hard seltzer line. 

But Kraft Heinz has seen total revenue decline for six straight quarters. The owner of the Kool-Aid and Oscar Mayer said in April that organic sales, which removes currency changes and other items, are expected to decline 1.5% to 3.5% during its 2025 fiscal year. Previously it forecast sales to be flat to down 2.5% from the prior 12 months.

Similar to other packaged food companies, Kraft Heinz has seen cash-strapped consumers cut down on spending due to inflation. At the same time, product demand has suffered as shoppers prioritize offerings viewed as healthier or reduce how much they eat due to the use of GLP-1 weight loss drugs. 

Kraft Heinz also on Tuesday announced that Warren Buffett’s Berkshire Hathaway will no longer hold seats on its board. The food manufacturer said Timothy Kenesey and Alicia Knapp have stepped down due to their ties to the high-profile holding company. 

Their decision to leave the board was “not the result of any disagreement with management or the Board related to the Company’s operations, policies or practices,” Kraft Heinz added.