[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Drew Fallon [@drewfallon12](/creator/twitter/drewfallon12) on x 14.2K followers Created: 2025-07-16 13:55:06 UTC Last week it was announced that KraftHeinz is exploring the spinoff of its grocery business from its condiments business in an effort to unlock shareholder value. The news comes on the heels of the recently completed Kellogg's spinoff in which Kellogg's ($25B market cap) broke itself up into Kellanova (acquired for $36B by Mars) & W.K. Kellogg (acquired by Ferrero for $3b). That move created $14B of shareholder value - and KraftHeinz is clearly interested in doing the same thing, less than X months after Berkshire Hathaway rolled off its two board seats in May - which has led many to believe Warren Buffet & Co are selling their position. I estimate that the 'Grocery' business for Kraft Heinz does around $14B in revenue with condiments accounting for the other $11B of KraftHeinz's $25B in revenue. Kraft Heinz doesn't disclose EBITDA by segment, but overall carries around a XX% EBITDA margin, which if applied across the two segments would make them look like: Condiments: $11B Sales (-4% YoY) // $2.75B EBITDA Grocery: $14B Sales (-2% YoY) // $3.5B EBITDA The difference between Kellogg's & KraftHeinz is that Kellogg's spin-off had one particularly attractive business in Kellanova that was growing and riding secular tailwinds - I'm not sure I see that inside of KH. That said, KH stock has performed miserably, down XX% from 2017 highs after the merger in 2015 and I do believe this is an opportunity to create value, maybe just not +50%. More interestingly, I'm curious what this means for society. Kellogg's & KraftHeinz - two of the dominant 'BigFood' companies of the last decade didn't stand alone. Amidst the explosion in better for you snacking/eating/drinking, these big behemoths fell behind. For example, KraftHeinz last real acquisition in the BFY space was Primal Kitchen in 2018. This week in my newsletter, we're going deep into the potential spinoff of KraftHeinz, explaining how - and if - the maneuver really will create value for shareholders. Subscribe at the link pinned to my profile!  XXXXX engagements  **Related Topics** [$3b](/topic/$3b) [ferrero](/topic/ferrero) [mars](/topic/mars) [$36b](/topic/$36b) [$25b](/topic/$25b) [kellanova](/topic/kellanova) [stocks consumer defensive](/topic/stocks-consumer-defensive) [wk kellogg](/topic/wk-kellogg) [Post Link](https://x.com/drewfallon12/status/1945482324352929861)
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Drew Fallon @drewfallon12 on x 14.2K followers
Created: 2025-07-16 13:55:06 UTC
Last week it was announced that KraftHeinz is exploring the spinoff of its grocery business from its condiments business in an effort to unlock shareholder value.
The news comes on the heels of the recently completed Kellogg's spinoff in which Kellogg's ($25B market cap) broke itself up into Kellanova (acquired for $36B by Mars) & W.K. Kellogg (acquired by Ferrero for $3b).
That move created $14B of shareholder value - and KraftHeinz is clearly interested in doing the same thing, less than X months after Berkshire Hathaway rolled off its two board seats in May - which has led many to believe Warren Buffet & Co are selling their position.
I estimate that the 'Grocery' business for Kraft Heinz does around $14B in revenue with condiments accounting for the other $11B of KraftHeinz's $25B in revenue.
Kraft Heinz doesn't disclose EBITDA by segment, but overall carries around a XX% EBITDA margin, which if applied across the two segments would make them look like:
Condiments: $11B Sales (-4% YoY) // $2.75B EBITDA Grocery: $14B Sales (-2% YoY) // $3.5B EBITDA
The difference between Kellogg's & KraftHeinz is that Kellogg's spin-off had one particularly attractive business in Kellanova that was growing and riding secular tailwinds - I'm not sure I see that inside of KH.
That said, KH stock has performed miserably, down XX% from 2017 highs after the merger in 2015 and I do believe this is an opportunity to create value, maybe just not +50%.
More interestingly, I'm curious what this means for society. Kellogg's & KraftHeinz - two of the dominant 'BigFood' companies of the last decade didn't stand alone.
Amidst the explosion in better for you snacking/eating/drinking, these big behemoths fell behind. For example, KraftHeinz last real acquisition in the BFY space was Primal Kitchen in 2018.
This week in my newsletter, we're going deep into the potential spinoff of KraftHeinz, explaining how - and if - the maneuver really will create value for shareholders.
Subscribe at the link pinned to my profile!
XXXXX engagements
Related Topics $3b ferrero mars $36b $25b kellanova stocks consumer defensive wk kellogg