The Kraft Heinz Company split in two companies, ending its 15-year merger. 

Kraft and Heinz merged in 2015, combining the legendary Kraft Mac and Cheese and Heinz Ketchup. 

With a drop in sales, the split comes because the company wants to focus on each market independently. 

“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,” Kraft Heinz Executive Chair Miguel Patricio said in a statement. 

The merger was arranged by Warren Buffett’s Berkshire Hathaway and the 3G investment firm, combining all of their products under one company and making Kraft Heinz the third largest food company in North America, according to CNN. 

The news to split reportedly comes after all of the Berkshire representatives stepped down from the board.

The company said that the decision to split is meant to reevaluate both businesses. The Kraft Heinz split is reported to be costly, with shareholders unable to vote. 

While many in the company seem to disagree with Patricio, he has made up his mind, selling the split as the best course of action. 

The smaller companies will be able to better manage their finances, and “allocate the right level of attention.”

After detailing its break up plans, Kraft Heinz shares fell 7% on Sept. 2, but shares have been decreasing by 27% over the past year, “slumping further than an S&P index tracking packaged food and meat companies.” 

It is unclear whether the decision to break up the company will improve the sales of its products and how consumers and shareholders will react to the split once it is finalized.

 The breakup of the two companies may not improve sales nor help the business, which may force one or both of the companies into Chapter 11 bankruptcy, as plans are expected to be costly. 

The split is expected to be fully underway and finalized in early to mid 2026.