The History of Kraft: Splits, Mergers, and Heinz

A Brand That Cannot Stop Splitting

James Kraft started selling cheese from a horse-drawn wagon in Chicago in 1903. Today, the Kraft name appears across at least three separate publicly traded corporations. It has been part of National Dairy, Philip Morris, Kraft Foods, Mondelez International, and Kraft Heinz. It is about to split again.

In September 2025, Kraft Heinz announced plans to divide into two separate publicly traded companies by the second half of 2026. Former Kellanova CEO Steve Cahillane will lead the high-growth company retaining Heinz, Philadelphia cream cheese, and Kraft Mac & Cheese.

This is the story of how a single cheese brand ended up scattered across multiple corporations, and why it keeps splitting.

The Timeline

1903-1988: Building the Empire

James L. Kraft started selling cheese from a horse-drawn wagon in Chicago in 1903. By 1914, he had incorporated J.L. Kraft & Bros. Company. The business pioneered processed cheese and grew through decades of acquisitions.

• 1903: James Kraft starts cheese wholesale business
• 1914: Incorporated as J.L. Kraft & Bros.
• 1928: Merged with Phenix Cheese Corporation to form Kraft-Phenix Cheese
• 1930: National Dairy Products acquired Kraft-Phenix
• 1969: National Dairy renamed to Kraftco Corporation
• 1976: Renamed to Kraft Inc.
• 1988: Philip Morris Companies (now Altria) acquired Kraft for $12.9 billion

1988-2000: The Philip Morris Era

Philip Morris (the tobacco giant) acquired Kraft in 1988 and merged it with its existing food business, General Foods, to create Kraft General Foods. The combined entity was immediately one of the largest food companies in the world.

In 1995, Philip Morris merged Kraft General Foods with its other food division to create Kraft Foods Inc., adding Maxwell House coffee, Oscar Mayer, Jell-O, and dozens of cheese and packaged food brands.

2007-2012: The First Split

2007: Altria (formerly Philip Morris) spun off Kraft Foods as an independent publicly traded company.

2010: Kraft Foods acquired Cadbury, the British chocolate maker, for $19.5 billion. The acquisition was controversial. It loaded the company with debt and added a portfolio of global snack brands that did not fit naturally with Kraft's North American grocery focus.

• Mondelez International (NASDAQ: MDLZ): Took the global snacking business, including Oreo, Cadbury, Toblerone, Trident, and Chips Ahoy
• Kraft Foods Group: Retained the North American grocery brands, including Kraft cheese, Oscar Mayer, Maxwell House, Jell-O, and Velveeta

Mondelez became a global snacking company. Kraft Foods Group remained focused on the slower-growing American grocery market.

2015: The Heinz Merger

In 2015, 3G Capital (a Brazilian-American private equity firm) and Berkshire Hathaway (Warren Buffett's holding company) engineered the merger of Kraft Foods Group with H.J. Heinz Company to create The Kraft Heinz Company (NASDAQ: KHC).

The deal valued the combined company at approximately $46 billion. 3G Capital applied its zero-based budgeting approach, cutting costs aggressively across the business.

• Short-term profits improved as costs were cut
• Long-term brand health deteriorated as marketing and R&D budgets were reduced
• A $15.4 billion goodwill writedown in 2019 acknowledged the combined company had been overvalued
• The stock price fell from approximately $90 at merger to under $30 by 2020

2025-2026: The Second Split

In September 2025, Kraft Heinz announced it would split into two publicly traded companies:

Company 1 (High-Growth): Retains Heinz ketchup, Philadelphia cream cheese, Kraft Mac & Cheese, and Lunchables. Steve Cahillane leads this company.

Company 2 (Grocery): Houses Oscar Mayer, Maxwell House, Velveeta, Jell-O, and Cool Whip.

The split is expected to close in the second half of 2026. Reuters described it as "unwinding the disappointing merger" between Kraft and Heinz. That is accurate. The $46 billion combination delivered 11 years of declining brand equity and a $15.4 billion writedown.

Where Are All the Kraft Brands Now?

The Kraft name is now scattered across multiple corporations:

After the 2026 split, the Kraft name will appear across at least three separate publicly traded companies: the two Kraft Heinz successors plus Mondelez, which still uses Kraft branding in some international markets.

Why Does Kraft Keep Splitting?

The Conglomerate Discount

Wall Street typically values focused companies more highly than diversified conglomerates. Each split has been driven by the belief that individual parts are worth more separately than together. High-growth brands like Heinz and Philadelphia command higher valuation multiples than declining brands like Maxwell House. Keeping them in the same corporate structure suppresses both.

Different Growth Profiles

Fast-growing brands require investment in marketing and innovation. Slow-growing brands benefit from cost optimization. Housing both under one corporate roof creates tension between investment and efficiency. Splitting allows each company to pursue its natural strategy.

Private Equity Influence

3G Capital's involvement in both the 2015 merger and the 2025 split reflects private equity's role in consumer goods. 3G's initial strategy of cost-cutting and merger synergies has given way to recognition that the combined entity was not delivering shareholder value.

Lessons for Consumers

Kraft's 120-year history illustrates patterns that repeat across the consumer goods industry:

1. Brand names outlast corporate structures. The Kraft name has survived every merger, split, and restructuring. Consumers still buy Kraft cheese regardless of which corporation holds the trademark.

2. Mergers are not permanent. The Kraft-Heinz merger, once described as a landmark combination, is being unwound 11 years later at a fraction of its original value.

3. Ownership affects management quality. Under 3G Capital's cost-cutting approach, Kraft Heinz brands saw reduced marketing and product innovation for years. The 2026 split is an acknowledgment that brands with different growth rates need different management structures and investment levels.

Frequently Asked Questions

Who owns Kraft in 2026?

The Kraft Heinz Company (NASDAQ: KHC) currently owns all Kraft-branded grocery products in North America. However, the company announced in September 2025 that it will split into two separate companies by the second half of 2026. Snack brands formerly under Kraft (Oreo, Cadbury) are owned by Mondelez International.

Is Kraft Heinz splitting up?

Yes. Kraft Heinz announced in September 2025 that it will split into two publicly traded companies. The "high-growth" company will keep Heinz, Philadelphia, and Kraft Mac & Cheese. The "grocery" company will keep Oscar Mayer, Maxwell House, and Jell-O.

Does Mondelez still use the Kraft name?

Mondelez International uses the Kraft name on some products in international markets. In the United States, Mondelez brands (Oreo, Cadbury, Chips Ahoy) do not carry the Kraft name.

Was the Kraft-Heinz merger successful?

By most financial measures, no. Kraft Heinz's stock price declined significantly from its post-merger high, the company took a $15.4 billion writedown in 2019, and the planned 2026 split essentially unwinds the combination.

The Bottom Line

James Kraft started with a cheese wagon in 1903. The brand he built has been part of National Dairy, Philip Morris, Kraft Foods, Mondelez, and Kraft Heinz. It is about to be split again.

Through all of it, consumers kept buying Kraft cheese, Heinz ketchup, and Philadelphia cream cheese. The corporate reshuffling was largely invisible to the people actually eating the products. That is how most brand ownership works.

Explore food brand ownership on WhoBrands or browse food and beverage brands.

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Sources

1. Kraft Heinz Company. "Plan to Separate into Two Companies." Press release, September 2025. 2. CNBC. "Kraft Heinz Taps Former Kellanova CEO Steve Cahillane." December 2025. 3. Reuters. "Kraft Heinz Splits, Unwinding Disappointing Merger." September 2025. 4. Forbes. "Kraft Heinz To Split Into Two Companies." September 2025. 5. Kraft Heinz Company. Annual Reports 2019-2024.

All brand ownership data verified through WhoBrands.com's research methodology. Last updated: January 20, 2026.