Warren Buffett Expresses Disappointment in Kraft Heinz Split

Warren Buffett voiced his dissatisfaction with the breakup of Kraft Heinz, a company formed through a merger he championed in 2015. The Oracle of Omaha admitted the merger was "not a brilliant idea" and criticized the split as failing to address underlying issues. Kraft Heinz shares plummeted over 7% following his remarks.

The restructured company now operates as two distinct entities: one focusing on sauces and shelf-stable meals, the other managing U.S. household brands. Berkshire Hathaway maintains its 27.5% stake, unchanged since the original merger. However, the investment has proven troublesome, with Kraft Heinz losing nearly 70% of its value since 2015.

Buffett's successor, Greg Abel, echoed these concerns. The leadership transition comes as Kraft Heinz grapples with shifting consumer preferences and declining U.S. sales. The food giant's market capitalization now stands at just $33 billion, a shadow of its former valuation.