By Neil J Kanatt
Jan 21 (Reuters) - Kraft Heinz’s (KHC.O) shares slumped about 7% to a near six-year low on Wednesday after the Heinz ketchup maker disclosed that Berkshire Hathaway (BRKa.N) may sell its 27.5% stake as the food giant prepares to split into two businesses.
The Oscar Mayer meats maker had filed a prospectus supplement with the U.S. securities regulator to register the potential resale of Berkshire’s 325.4 million shares.
The stake is valued at about $7.7 billion based on a closing price of $23.76 on Tuesday. Kraft Heinz’s shares fell to as low as $21.99 on Wednesday.
Berkshire under Warren Buffett, and
now
led by Greg Abel, along with 3G Capital, was instrumental in the 2015 merger that formed Kraft Heinz. But its investment has been marked by a $3 billion
writedown
in 2019 and another $3.76 billion last year.
”(Greg Abel) has now decided to cut his losses and close the position,” Russ Mould, investment director at AJ Bell said.
Kraft Heinz has been one of the worst performers in the U.S. packaged food sector, pressured by deep cost cuts, limited innovation and rising competition from healthier and private-label brands.
The spinoff, which is expected to close in the second half of 2026, will split the company into two - one focused on groceries and the other on sauces and spreads. Buffett had then told CNBC he was “disappointed” in the split as taking the company apart would not fix its problems.
“The sale is unlikely to affect Kraft Heinz’s break-up - and instead underscores the need for a strategic overhaul to get the company’s brands back on track,” Emarketer analyst Rachel Wolff said.
Kraft Heinz appointed industry veteran Steve Cahillane as its new CEO starting in January. He had previously led cereal and snack maker Kellogg through its split in 2023.
Kraft Heinz shares crater post $45 billion merger in 2015
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Kraft Heinz shares fell nearly 7% to a six-year low after the company revealed Berkshire Hathaway may sell its 27.5% stake as it prepares to split into two businesses. The stake, valued at approximately $7.7 billion, was registered for potential resale. Analysts suggest the sale highlights the need for a strategic overhaul, as Kraft Heinz has struggled with competition and innovation. The company appointed Steve Cahillane as CEO in January, aiming to revitalize its brands ahead of the expected spinoff in 2026.

- Kraft Heinz's shares fell nearly 7% to a six-year low following the disclosure that Berkshire Hathaway might sell its 27.5% stake as the company plans to split into two businesses.  
- The stake, valued at approximately $7.7 billion, is part of a trend where Berkshire has faced significant writedowns on its investment in Kraft Heinz.  
- Analysts suggest the sale highlights the need for a strategic overhaul, as Kraft Heinz continues to struggle against competition and poor performance in the packaged food sector.

Kraft Heinz shares hit six-year low on Berkshire's potential stake sale