Kraft Heinz replaces CEO ahead of split into two public companies
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Heinz ketchup on display in a market in Pittsburgh, Pa. Photo by Gene J. Puskar/AP filesArticle contentKraft Heinz Co. is replacing its chief executive, with former Kellanova CEO Steve Cahillane set to take over from Carlos Abrams-Rivera on Jan. 1.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe move follows a difficult period for the food company, which said in September that it would split into two separate entities. The company’s stock has dropped about six per cent since then.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentKraft Heinz is one of a raft of food and beverage companies that have announced major changes in management and strategy as the industry struggles to adapt to consumers shifting toward healthier, less-processed options.Article contentArticle contentLast week PepsiCo Inc. said it would cut prices and reduce the number of its products as part of an agreement with an activist investor, while Coca-Cola Co. announced a new chief executive. Over the summer, Keurig Dr Pepper Inc. announced it was acquiring JDE Peet’s NV and would split into two companies.Article contentInvestorCanada's best source for investing news, analysis and insight.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentAbrams-Rivera, who has been Kraft Heinz’s CEO for about two years, will serve as an adviser to the company until March 6, Kraft Heinz said in a statement.Article contentShares of Kraft Heinz were little changed in premarket trading. The stock had declined 20 per cent this year through Monday.Article contentAfter the separation into two public firms, Cahillane will become CEO of the company, with brands such as Heinz ketchup, other iconic condiments and boxed meals that comprise its fastest-growing products with about US$15 billion in annual sales. The split is expected to be completed in the second half of 2026, according to Kraft Heinz.Article contentCahillane had been CEO of Kellanova, a snack food company, since 2017. Privately-held Mars Inc. completed its acquisition of Kellanova earlier this month. He also served as CEO of The Nature’s Bounty Co., which makes vitamins and supplements, and spent time at Coca-Cola, where he served as president of Coca-Cola Americas.Article contentAs part of his employment agreement, Cahillane will receive a one-time equity award in January with a target value of US$11 million.Article contentThe other company includes slower-growing grocery products, such as Oscar Mayer hot dogs and Lunchables, and currently generates revenue of roughly US$10 billion. That business was to be led by Abrams-Rivera. But now the board will initiate a search for a CEO to lead it.Article contentThe Wall Street Journal earlier reported the news.Article contentBloomberg.comArticle contentTrending The Federal Reserve’s rate cut was a clear signal to investors Investor Posthaste: A metric that tells how Canadians are really doing is improving for the first time in years News Garry Marr: How raiding your TFSA before the end of year could save you thousands Personal Finance McKinsey plots thousands of layoffs in consulting slowdown Work Bank of Canada expected to hold interest rate steady through 2026 as inflation cools Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.
The Federal Reserve’s rate cut was a clear signal to investors Investor Posthaste: A metric that tells how Canadians are really doing is improving for the first time in years News Garry Marr: How raiding your TFSA before the end of year could save you thousands Personal Finance McKinsey plots thousands of layoffs in consulting slowdown Work Bank of Canada expected to hold interest rate steady through 2026 as inflation cools Economy