Kraft Heinz to separate into two publicly traded companies

Kraft Heinz Co. said Tuesday it plans to split into two separate companies, undoing a mega-deal ushered in a decade ago that turned the maker of Kraft Mac & Cheese into one of the largest packaged food sellers in the world.

Following the breakup, one company will sell Heinz ketchup, other iconic condiments and boxed meals that comprise its fastest-growing global brands with $15.4 billion in annual sales. The other firm will include slower-growing grocery products, such as Oscar Mayer hot dogs and Lunchables, which currently generate revenue of $10.4 billion.

Shares of Kraft Heinz fell as much as 5.5%, their biggest drop since Feb. 12. The stock has dropped about 14% this year, trailing a 9% gain in the S&P 500.

The goal of the split is to siphon off lagging grocery staples into a new en