Feb 12 (Reuters) - Kraft Heinz said on Thursday it expects annual capital spending of about $950 million in 2026, higher than last year, a day after the packaged-foods maker hit pause on its plans to split and announced new investments to boost its business.
The company on Wednesday halted its efforts to split into two entities, a move CEO Steve Cahillane said was necessary due to deteriorating conditions in the food industry. The pause is expected to save the company $300 million in costs in 2026.
But Callihane did not rule out the possibility of a split in the future, even as he said the challenges Kraft Heinz was facing were "fixable and within our control."
The company will now focus on marketing and research with a $600 million investment to drive recovery in its U.S. business, hit by tepid demand.
Last September, Kraft Heinz announced separation plans, proposing to split into two companies, one focused on groceries and the other on sauces and spreads, after failing to achieve the kind of growth expected when the company was formed a decade ago under a merger.
Shares of the company were down about 1% in premarket trading.
Kraft Heinz forecast fiscal 2026 capital expenditure of about $950 million, compared with the $801 million a year earlier.
The company said it expects to cut about 60 positions as of December 27, primarily outside of the U.S. and Canada. It eliminated about 600 jobs last year.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shinjini Ganguli)
