Subject: Kraft planning split
Kraft Heinz Co. is preparing to break itself up, people familiar with the matter said.

Under the plan, the company could spin off a large part of its grocery business into a new entity, according to the people. This would allow it to focus on faster-growing segments such as sauces, they said.

Kraft Heinz is still finalizing details of the split, which could be announced in the coming weeks, the people said, asking not to be identified discussing confidential information.

Kraft Heinz was formed in a 2015 merger orchestrated by 3G Capital and Warren Buffett’s Berkshire Hathaway Inc. The deal created a packaged-food behemoth with a stable of household names, from Heinz ketchup and Classico tomato sauce to Jell-O and Oscar Mayer hot dogs.

But the combined company has struggled to expand its sales, with revenue declining for the past two fiscal years as consumer tastes shift and competition intensifies. Profitability, as measured by operating margin, also dipped in the most recent year. In April, Kraft Heinz trimmed its annual sales and profit outlook, citing worsening consumer sentiment.

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