Kraft Heinz Pauses Split, Boosts Investment

Kraft Heinz announced a pause in its plans to split into two companies, a decade after the merger that created one of the largest food manufacturers. CEO Steve Cahillane stated that the company would instead invest $600 million in marketing, sales, and product development to focus on profitable growth. This decision comes as Kraft Heinz reported lower quarterly and annual results, with net sales falling 3% and net income dropping 69.5% in the fourth quarter. The company's shares fell 5.2% following the announcement. Previously, Kraft Heinz had intended to separate its stronger-selling brands from slower-selling ones. Major investor Berkshire Hathaway had already taken a significant write-down on its investment and its representatives resigned from the board, with speculation now that Berkshire Hathaway may sell its stake.