Kraft Heinz sells North American coffee brands for $650 million

Kraft Heinz agreed to sell its North American coffee business to One Rock Capital Partners in a transaction valued at $650 million on an enterprise basis. The sale includes well-known brands such as Maxwell House and Gevalia. The company will retain a 30% noncontrolling equity stake in the sold unit.

Kraft Heinz CEO Steve Cahillane called the deal a step toward unlocking portfolio value. He joined the firm in January and halted plans to split the company in two, a move that would have undone the $46 billion merger from a decade ago. Cahillane stated that the company's problems were fixable and within its control.

Since arriving, Cahillane has directed a $700 million investment back into the business. The strategy focuses on sharpening the portfolio around core brands. The company stated it will use $500 million in post-tax cash proceeds from the coffee sale to pay down debts. This action aims to prioritize resources where growth can be accelerated.

The coffee divestiture is expected to close in mid-2027. One Rock Capital Partners is the acquiring private equity firm. Kraft Heinz said the transaction fits its broader effort to refocus operations on primary product lines.

Kraft Heinz also reported third-quarter earnings on Wednesday that exceeded market expectations. The company raised its 2026 outlook, projecting organic net sales to decline between 0.5% and 1.25%. This forecast is an improvement from the second-quarter report, which predicted sales could drop by as much as 2%. Cahillane said the operating plan to turn around the U.S. business is on track, with market share and volume trends improving in every region relative to last year. Shares of the company rose approximately 5% on Wednesday morning.

The deal represents a concrete step in the company's restructuring. Kraft Heinz will continue to operate the coffee brand under the new ownership structure while maintaining its minority stake. The financial impact of the transaction will be reflected in the company's balance sheet as the deal closes.