Warren Buffett Fumes as Kraft Heinz Splits Into Two Without Shareholder Vote (2025 Update)
- Why Is Warren Buffett So Angry About the Kraft Heinz Split?
- The $300 Million Question: Is the Split Even Worth It?
- Boardroom Exodus and Legal Gray Zones
- Beyond Buffett: Why Analysts Hate This Move
- Berkshire’s Silver Linings
- FAQ: Your Kraft Heinz Split Questions, Answered
Warren Buffett is publicly venting his frustration after Kraft Heinz announced a controversial split into two separate companies—without consulting shareholders. The move, which Berkshire Hathaway opposes, comes with a $300 million price tag and has already triggered a stock slump. With Buffett’s 27.5% stake ($8.9 billion) at risk, the fallout could reshape Kraft Heinz’s future. Here’s why the Oracle of Omaha is furious, how markets reacted, and what legal battles might loom.
Why Is Warren Buffett So Angry About the Kraft Heinz Split?
Buffett didn’t hold back during a private call with CNBC’s Becky Quick this week. His Core gripe? Shareholders like Berkshire—Kraft Heinz’s largest investor—were shut out of the decision entirely. "This isn’t how you treat partners," he grumbled. Greg Abel, Berkshire’s CEO-in-waiting, had already warned Kraft Heinz executives that splitting the company was a bad idea. But the board plowed ahead anyway, ignoring its biggest stakeholder. Cue the drama.
The $300 Million Question: Is the Split Even Worth It?
Buffett’s not buying the logic. "Merging Kraft and Heinz in 2015 wasn’t genius, but tearing them apart now fixes nothing," he told Quick. The operational costs alone ($300 million!) could’ve been spent on innovation or dividends. Markets agreed—Kraft Heinz shares nosedived 7.6% on the news before settling at a 2.4% weekly loss. Ouch. For context: The stock has hemorrhaged 69% of its value since the 2015 merger. Even Buffett’s $9.8 billion investment is now underwater by $1 billion.
Boardroom Exodus and Legal Gray Zones
Two Berkshire-linked directors quit Kraft Heinz’s board in May after rumors swirled about "value creation" plans (read: breakup). Legal experts whisper that sidelining major shareholders might invite lawsuits. Buffett hasn’t confirmed if Berkshire will sell its stake, but he’s keeping options open: "We’ll do what’s best for Berkshire." One red line? No sweetheart deals—any buyout offer must go to all shareholders equally.
Beyond Buffett: Why Analysts Hate This Move
Theroasted the split as a "band-aid for years of cost-cutting failures." Instead of innovating, Kraft Heinz is rearranging deck chairs—while rivals like Nestlé invest in R&D. Even BTCC’s market analysts note: "Spin-offs rarely work without consumer demand shifts." (Source: TradingView data)
Berkshire’s Silver Linings
Not all is bleak in Omaha. Berkshire’s other holdings—like Japanese trading houses Itochu and Mitsubishi—are thriving. As of Q2 2025, its 13F filing shows a diversified global portfolio. But Kraft Heinz remains a thorn. Will Buffett cut his losses? If he dumps shares, the stock could freefall further under SEC disclosure rules.
FAQ: Your Kraft Heinz Split Questions, Answered
Did shareholders get to vote on the Kraft Heinz split?
No—the board approved the split unilaterally, sparking Buffett’s outrage.
How much will the split cost?
$300 million in operational expenses over the next year.
Is Buffett selling Berkshire’s Kraft Heinz stake?
He hasn’t decided but insists any sale WOULD follow SEC transparency rules.
