Kraft Heinz to Sell North American Coffee Business in $650 Million Deal

Kraft Heinz announced on Wednesday that it would divest its North American coffee business in a deal valued at $650 million, as CEO Steve Cahillane sharpens the company’s focus on its core packaged food and condiments portfolio. The unit, which includes popular brands such as Maxwell House and Gevalia, will be sold to private equity firm One Rock Capital Partners. Kraft Heinz will retain a 30% equity stake in the business, with the transaction expected to close in mid-2027.

The divestiture comes as Cahillane continues his turnaround strategy after taking over as CEO in January and putting a planned company split on hold. Kraft Heinz has increased spending on marketing and innovation by $700 million, focusing on protein-rich foods and electrolyte-infused beverages to attract health-conscious consumers. The company also raised the lower end of its full-year 2026 organic net sales outlook, now expecting a decline of 1.25% to 0.5%. Its shares rose approximately 3% in premarket trading following the announcement.

However, the company continues to face challenges from declining sales volumes and rising costs. Third-quarter volumes fell 1.1 percentage points, with North America recording the steepest decline at 2.4 percentage points. Adjusted operating income dropped 15.2% due to higher procurement and logistics expenses, lower volumes and increased advertising expenditure. Net sales declined nearly 2% to $6.12 billion, although they exceeded market expectations. Despite these pressures, lower interest expenses and taxes helped Kraft Heinz beat profit estimates and raise its annual adjusted earnings per share forecast to between $2.07 and $2.13.

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