Kraft Heinz Takes a Pause on Splitting Up to Focus on Turning Things Around

Kraft Heinz has decided to stop work on its planned split, saying the problems it faces can be fixed. The new chief executive, Steve Cahillane, who joined last year, said the company’s main goal is to get back on a profitable growth path. He added that all attention must stay on the operating plan and that it makes sense to pause any separation work for now. The company’s shares dropped about 7% before trading opened, showing investors are nervous. At the same time, Kraft Heinz will pour $600 million into its U. S. business. That money is earmarked for marketing, sales and research and development, plus improving products and setting better prices.The split idea had been announced in September after a 10‑year merger that once made the firm one of the world’s biggest food names. The merger’s shine faded as U. S. sales fell and many well‑known brands lost value. For several years the company has been working to revive its U. S. operations. Warren Buffett, who helped create the merger, expressed disappointment with the decision to break up. Berkshire Hathaway is now moving to reduce its 28% stake in Kraft Heinz. The pause announcement came just as the company released its quarterly earnings. While profits beat expectations, revenue did not hit analyst forecasts.