Kraft Heinz sheds North American coffee unit in $650 million divestiture

Kraft Heinz will retain a 30% noncontrolling equity stake in the divested coffee unit. The company anticipates generating $500 million in post-tax cash proceeds, which CEO Steve Cahillane plans to direct toward paying down debt. This strategy aligns with a broader corporate overhaul aimed at accelerating growth following the abandonment of plans to split the organization.

Cahillane, who assumed the CEO role in January, is steering a recovery plan that includes a $700 million reinvestment into core operations. Financial results released alongside the divestiture announcement show third-quarter earnings exceeding market expectations. The company also improved its 2026 outlook, now projecting organic net sales to decline by only 0.5% to 1.25%, a notable recovery from previous estimates of a 2% drop. Investors responded favorably to the news, pushing shares up roughly 5% in Wednesday morning trading.