In a significant leadership shakeup, Kraft Heinz Co. has announced it is replacing its chief executive officer. Steve Cahillane, the former CEO of snack food company Kellanova, is set to take the helm from Carlos Abrams-Rivera on January 1, 2026.
Leadership Change Amid Major Restructuring
The CEO transition follows a challenging period for the packaged food conglomerate. In September 2025, Kraft Heinz revealed plans to divide itself into two independent, publicly traded entities. Since that announcement, the company's stock has declined by approximately six per cent, reflecting investor uncertainty. Overall, shares have fallen roughly 20 per cent year-to-date through mid-December.
Abrams-Rivera, who served as CEO for about two years, will remain with Kraft Heinz as an adviser until March 6, 2026. The board of directors will now begin a search for a CEO to lead the second company resulting from the split, a role originally intended for Abrams-Rivera.
The Plan to Split a Food Giant
The separation, expected to be finalized in the second half of 2026, will create two distinct businesses. Cahillane will lead the faster-growing portfolio, which includes iconic brands like Heinz ketchup, other condiments, and boxed meals. This segment generates about US$15 billion in annual sales.
The other company will house slower-growing grocery staples such as Oscar Mayer hot dogs and Lunchables. This business currently brings in roughly US$10 billion in revenue annually.
Industry-Wide Turbulence and New Leadership
Kraft Heinz is not alone in navigating major changes. The broader food and beverage industry is undergoing a strategic transformation as it attempts to adapt to shifting consumer preferences toward healthier, less-processed options.
Recent months have seen similar upheaval among rivals:
- PepsiCo Inc. agreed to cut prices and streamline its product lineup following pressure from an activist investor.
- Coca-Cola Co. announced the appointment of a new chief executive.
- Keurig Dr Pepper Inc. disclosed plans to acquire JDE Peet's NV and subsequently split into two companies.
Steve Cahillane brings extensive experience to his new role. He served as CEO of Kellanova from 2017 until its acquisition by privately-held Mars Inc. earlier this month. His resume also includes leadership roles as CEO of The Nature’s Bounty Co. and as president of Coca-Cola Americas. As part of his employment agreement with Kraft Heinz, Cahillane will receive a one-time equity award in January with a target value of US$11 million.
The news of the executive change was first reported by The Wall Street Journal, with Kraft Heinz shares showing little movement in premarket trading following the announcement.
