Kraft Heinz names Steve Cahillane as CEO before disbanding

Kraft Heinz Tuesday announced that former Keranova CEO Steve Cahillane will lead the company ahead of a planned separation next year.

Cahillane will join owner Oscar Mayer as chief executive officer on January 1. After Kraft Heinz is split into two publicly traded companies, he will serve as CEO of a business called Global Taste Elevation, which includes high-growth brands such as Heinz, Philadelphia and Kraft Mac & Cheese.

Mr. Calilene previously guided Kellogg Co. into a 2023 spin-off. The company separated its struggling North American cereal business from its high-growth snack division and later renamed it Keranova. Karilane remained Keranova’s chief executive officer until Mars acquired the company for $35.9 billion.

Outgoing Kraft Heinz CEO Carlos Abrams Rivera was initially tapped to lead another company known as North American Grocery. However, he will continue to serve as an advisor until March 6th. Abrams-Rivera has been the food giant’s CEO since 2024.

The Kraft Heinz board of directors will begin a search for a chief executive officer to lead the company’s portfolio of grocery staples, which includes brands such as Oscar Mayer and Kraft Singles.

As part of the transition, John Cahill, who served as Kraft’s CEO during the company’s merger with Heinz a decade ago, will replace Miguel Patricio as chairman of the company’s board.

Kraft Heinz expects the separation to take place in the second half of 2026. The company announced its split plan in September after years of sluggish sales despite efforts to rebuild. The split undoes much of the blockbuster $46 billion merger a decade ago that created one of the world’s largest food companies.

Kraft Heinz shares rose slightly in premarket trading. The stock price has fallen about 20% this year.

Program Notes: Steve Cahillane will speak on CNBC’s “Squawk on the Street” at 10:10 a.m. Tuesday.