Dec 16 (Reuters) - Kraft Heinz on Tuesday named industry veteran and former Kellogg top boss Steve Cahillane as its new CEO, ahead of the packaged goods giant's split into two independent companies.
In September, Kraft Heinz announced it will split into two companies, Global Taste Elevation Co and North American Grocery Co, with one focused on sauces and spreads and the other on groceries.
Cahillane begins in the new role effective January 1, succeeding Carlos Abrams-Rivera, who will now serve as an advisor
until March 6.
Abrams-Rivera, who took on the role of CEO at Kraft Heinz in 2024, was pegged to head Kraft Heinz's grocery unit post split, but on Tuesday the company said the board would initiate a CEO search for the business.
Cahillane, 60, earlier led Kellogg through its separation in 2023 and continued in the role at Kellanova - the global snacking business - until it was acquired by Mars for about $36 billion this year. He has also worked with Coca-Cola and AB InBev previously.
After Kraft Heinz's split, Cahillane would serve as CEO of the sauces and spreads unit.
Kraft Heinz's spinoff, expected to be completed by the second half of 2026, is also aimed at reducing operational complexity and improving focus on each business following weakening demand amid high inflation and economic uncertainty.
In October, the company cut its annual sales and profit targets as the Lunchables and Velveeta cheese maker continued to see budget-conscious consumers opt for cheaper private label brands.
Shares of the company have lost about 75% of its value since its peak in 2017. They are down 20% for the year and were trading at $24.67 in premarket trading on Tuesday.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shilpi Majumdar and Leroy Leo)
