Telford ketchup firm Kraft Heinz splits into two separate companies in bid to 'simplify' operations
A food manufacturer with a huge Telford factory is set to split into two separate companies, it says.
Kraft Heinz, which runs a large factory in Telford as one of three main manufacturing plants in the UK, says it plans to split its operations, a decade after it was formed in a mega-merger.
The company's operation in Hortonwood employs around 220 staff, using more than five million kilograms of tomatoes each year to produce a range of household name food products including Heinz ketchup, Amoy soy sauce, and HP sauce.
The firm was formed in 2015 by the merger of Kraft Foods Group and the H.J. Heinz Company, creating the fifth-largest food company in the world.
Now the company is set to split into two independent, publicly traded companies, in a move the firm says will "maximise Kraft Heinz’s capabilities and brands while reducing complexity".
“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” said Miguel Patricio, executive chair of the board for Kraft Heinz.
“By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value. I look forward to working closely with Carlos and the Kraft Heinz team in the months ahead to prepare the organisation for the separation.”
One part of the business will operate as Global Taste Elevation Co, which will include the group’s global brands and many of its sauces and tinned products, and include brands such as Heinz, Philadelphia and Kraft Mac & Cheese, the company said.
It will then also create the North American Grocery Co, focusing on staples in the US and other parts of the region, where it has brands including Oscar Mayer, Kraft Singles and Lunchables.
Carlos Abrams-Rivera, Kraft Heinz chief executive, said: "This move will unleash the power of our brands and unlock the potential of our business. This next step in our transformation is only possible because of the commitment of our 36,000 talented employees who deliver quality and value for consumers every day.
“We will continue to operate as ‘one Kraft Heinz’ throughout the separation process.”
The deal is expected to complete in the second half of next year, dependent on regulatory approval.
