Kraft Heinz has paused work on its previously announced separation and will instead deploy $600 million in incremental investment across marketing, sales and R&D, as new chief executive Steve Cahillane pivots the company towards restoring profitable growth.

The decision marks a shift for the $25 billion packaged food group, which had been exploring a break-up into two standalone publicly listed businesses.

Management said it would 'pause work related to the separation' and no longer incur associated dis-synergies this year, effectively redirecting focus – and capital – back into the core portfolio.

Cahillane said the priority is to ensure “all resources are fully focused on the execution of our operating plan,” framing the move as a pragmatic response to underperformance that he believes is “fixable and within our control”.

$600m aimed at growth levers

The $600 million investment will be channelled into marketing, sales capabilities and R&D, alongside initiatives to drive “product superiority” and selective pricing.

The spend is incremental to the base and will weigh on 2026 operating profit, with the company guiding to a 14%-18% decline in constant-currency adjusted operating income next year as a result.

For a business that has leaned heavily on cost discipline and pricing to defend margins in recent years, the move signals a rebalancing towards top-line stimulation – particularly in the US, where volumes have been under pressure.

The focus on product superiority and R&D suggests a renewed emphasis on renovation and innovation within core platforms, while stepped-up marketing points to a more aggressive stance in defending share against private label and branded rivals.

Strategic reset over structural overhaul

Pausing the split reduces execution complexity and avoids additional stranded costs at a time when the group is already navigating commodity inflation and volume softness. It also suggests management sees more immediate value creation in operational improvement than in structural separation.

Kraft Heinz generated $3.7 billion in free cash flow in 2025, giving it room to fund the commercial push while maintaining dividends and buybacks. Management reiterated confidence in its balance sheet and cash generation capacity to support the reset.

For the wider F&B industry, the move underlines a broader shift among large CPG players: after a period dominated by portfolio reshaping and financial engineering, attention is returning to brand investment, innovation and in-market execution as the primary levers for sustainable growth.

The key question for retailers and suppliers alike will be whether the $600 million injection can stabilise volumes and rebuild momentum quickly enough to justify the near-term hit to earnings – and whether the separation plan remains shelved permanently or merely delayed.