Key facts
- Kraft Heinz said the coffee unit sale to One Rock is expected to close in mid-2027.
- Kraft Heinz will retain a 30% non-controlling equity stake in the coffee business.
- The coffee unit includes brands Maxwell House, Gevalia and Ethical Bean.
- Kraft Heinz net sales fell nearly 2% to $6.12 billion, above LSEG estimates of $6.09 billion.
- The stock was up about 3% in premarket trading.
- CEO Steve Cahillane has overseen a $700 million increase in marketing and innovation spending.
Kraft Heinz said on November 4 it would divest its North American coffee business to private equity firm One Rock Capital Partners at an enterprise value of $650 million. The unit includes brands such as Maxwell House, Gevalia and Ethical Bean. The company said the deal is expected to close in mid-2027 and that it will retain a 30% non-controlling equity stake in the business.
The divestiture comes months after CEO Steve Cahillane, who took the helm in January, paused a plan to split the consumer goods maker into two businesses, one focused on groceries and the other on sauces and spreads. Cahillane said at the time that Kraft Heinz's problems were fixable but kept the option of a split on the table. He has overseen a $700 million increase in spending on marketing and innovation as the company leans into protein-heavy foods and electrolyte-infused drinks.
Kraft Heinz also reported quarterly results on November 4. Net sales declined nearly 2% to $6.12 billion, edging past estimates of $6.09 billion compiled by LSEG. The stock was up about 3% in premarket trading.