A Potential Berkshire Exit Casts Shadow Over Kraft Heinz’s Breakup Plans

Kraft Heinz US5007541064

Kraft Heinz finds itself navigating a critical juncture, with its ambitious corporate split now facing a significant headwind. The food conglomerate's strategic overhaul is being overshadowed by the looming possibility that its largest shareholder, Berkshire Hathaway, may divest its entire stake. A regulatory filing in late January revealed this potential move, introducing substantial uncertainty for investors.

The timing of Berkshire's potential exit is particularly delicate. Kraft Heinz management has confirmed its intention to separate into two independent public companies in the second half of 2026. One entity will concentrate on the global "Taste Elevation" and sauces business, while the other will house the North American grocery portfolio. This restructuring comes as the consumer staples sector, which struggled in 2025 amid a shift toward growth stocks, looks to 2026 for a potential recovery driven by innovation and pricing strategies.

The scale of a possible Berkshire sale is formidable. The investment holding company owns approximately 325 million shares, representing a stake of nearly 27.5%. Market observers interpret this potential divestment as a clear signal from Berkshire's new leadership under CEO Greg Abel, who succeeded Warren Buffett. Notably, Berkshire Hathaway, alongside 3G Capital, was the driving force behind the merger of Kraft and Heinz back in 2015.

Market Pressure and Technical Indicators

The mere prospect of such a large block of shares entering the market has created pronounced selling pressure. Over a twelve-month period, the share price has declined by more than 17%, closing at $23.50 on Monday. From a technical perspective, the Relative Strength Index (RSI) reading of 27.6 indicates an oversold condition. However, the fundamental uncertainty surrounding the major shareholder's plans continues to dominate market sentiment.

Upcoming Financial Report in Focus

All eyes are now turning to February 11, 2026. On this date, Kraft Heinz is scheduled to release its fourth-quarter earnings. This report will be scrutinized for evidence of the underlying operational strength of the business, separate from the headlines concerning shareholder structure and the planned corporate division. The results will offer a crucial look at the company's health as it approaches its transformative split.