Kraft Heinz names Steve Cahillane CEO: his plans to fix growth and execute breakup

Kraft Heinz is changing its leadership as it moves ahead with plans to break itself into two companies, ending a turbulent chapter marked by falling sales and investor frustration.

The food conglomerate said Steve Cahillane, a veteran consumer goods executive and former chief executive of Kellanova, will become chief executive of Kraft Heinz from Jan. 1.

Carlos Abrams-Rivera, who has led the company since early 2024, will step down and remain as an adviser until March 6.

The transition comes just months after Kraft Heinz announced it would split into two separate businesses, unwinding a merger completed nearly a decade ago.

The company said the shake-up is intended to position each business for more focused growth as the packaged food industry faces structural pressures.

Leadership change follows prolonged slump

Kraft Heinz has struggled in recent years, with sales declining for seven consecutive quarters and demand weakening across several core brands, including Lunchables, Capri Sun, macaroni and cheese, and mayonnaise.

During Abrams-Rivera’s tenure, shares of the company fell about 34%, according to Dow Jones Market Data, leaving investors with a negative total return of roughly 27%.

The company confirmed in September that it would separate into a global business focused on sauces, spreads, and seasonings, and a North America–focused grocery staples business.

Abrams-Rivera had been slated to lead the grocery unit after the split, while the board searched for a chief executive for the larger global operation.

That role will now be taken by Cahillane, who will lead the taste-focused business housing brands such as Heinz ketchup, Philadelphia cream cheese, and Kraft Mac & Cheese.

Kraft Heinz said it will launch a search for a separate chief executive to run the North American grocery unit, which will include Oscar Mayer, Kraft Singles, and Lunchables.

Cahillane’s priority: finalising 2026 operating plan, executing separation

“The food industry is clearly in a challenging moment,” Cahillane said in an interview.

He said Kraft Heinz’s decision to split itself up to create two businesses was a good one.

“This company has to meet the moment in the same way that we did at Kellanova,” he said.

Separating the business and creating two more-focused companies is a very exciting way to do it.

In an interview with CNBC, he said the immediate priority would be finalising the 2026 operating plan and executing the planned separation.

Cahillane also acknowledged in his interview with CNBC that broader trends, including the rise of weight-loss drugs and growing scrutiny of processed foods, are reshaping demand.

He said consumers are increasingly seeking healthier options and cleaner labels, and said the company needed to innovate around the portfolio.

In a separate interview with Reuters, the incoming chief executive said Kraft Heinz has been trading at a discount because it has not delivered organic growth, and that addressing this would be a central focus.

He added that while it was too early to comment on potential cost cuts, international markets represent the biggest growth opportunity for the business.

Industry under pressure

Kraft Heinz’s challenges mirror those facing much of the packaged food sector.

An S&P index tracking packaged food and meat companies is down about 14% over the past year, compared with a gain of roughly 12% for the broader S&P 500.

With its leadership reset and breakup plans moving forward, Kraft Heinz is betting that two more focused companies can better navigate a changing food landscape and revive growth after years of underperformance.

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