Why Kraft Heinz is splitting into 2 companies

KEY POINTS

Kraft Heinz will split into two companies, one focusing on sauces, spreads and shelf-stable meals, and the other on grocery items.

Since a megamerger in 2015, Kraft Heinz has struggled with sales and decreasing shares.

The split is meant to help reduce complexity and improve focus among the company's 56 product categories.

A decade after its megamerger, Kraft Heinz announced on Tuesday that it will be splitting into two companies.

The two new publicly traded businesses haven’t yet been named, per CNN. One will focus on sauces, spreads and shelf-stable meals, which are the faster growing businesses, including Philadelphia cream cheese, Heinz ketchup and Kraft Mac & Cheese. The other will focus on grocery items and food away from home businesses such as the Oscar Mayer, Kra