Kraft Heinz eyes spinning off chunk of grocery business: WSJ

Kraft Heinz eyes spinning off chunk of grocery business: WSJ

Kraft Heinz has announced its intention to sell its infant and specialty food business in Italy to NewPrinces Group, a significant move in the company's strategic realignment. The transaction, subject to regulatory approval, is expected to close by the end of 2025. NewPrinces will acquire iconic brands such as Plasmon, Nipiol, and Dieterba, along with the specialty food brands Aproten and Biaglut, and the production facility in Latina, Italy [1].

The deal underscores Kraft Heinz's commitment to focus on its core areas and enhance its long-term value creation. The company's president for Europe and Pacific Developed Markets, Willem Brandt, highlighted the strategic importance of the transaction, stating that it enables the company to invest and grow in its key markets [1].

NewPrinces, previously known as Newlat Food, was rebranded following its acquisition of Princes Limited in 2024. The group's portfolio now includes well-known brands such as Princes, Napolina, Delverde, Branston, and Flora, among others. The acquisition of Kraft Heinz’s Italian baby food and nutrition arm aligns with NewPrinces' broader ambitions to build a multinational food group rooted in Italy [2].

The transaction values the Italian baby food and nutrition arm at approximately €120 million, a significant addition to NewPrinces' growing portfolio. The deal is part of a series of strategic acquisitions for NewPrinces, which recently also acquired Diageo’s Italian operations and explored a possible London IPO [2].

The sale of the Italian baby food and nutrition arm is part of Kraft Heinz's broader strategy to streamline its operations and focus on its core competencies. The company aims to remove artificial dyes from all U.S. products and has been involved in various strategic initiatives to enhance its long-term value [3].

The Latina factory, which employs around 300 people, will continue to operate under NewPrinces' ownership, ensuring continuity in production and employment. Carmela Bazzarelli, managing director of Kraft Heinz Italia, expressed confidence in NewPrinces' ability to thrive with the acquired brands [1].

This transaction represents a strategic milestone for both Kraft Heinz and NewPrinces, with each company looking to strengthen its position in the competitive food and beverage market.

References:
[1] https://www.esmmagazine.com/a-brands/kraft-heinz-to-sell-italian-baby-food-business-to-newprinces-group-292164
[2] https://www.grocerygazette.co.uk/2025/07/11/new-princes-kraft-heinz/
[3] https://www.bizjournals.com/pittsburgh/news/2025/07/10/kraft-heinz-to-sell-off-some-italian-businesses.html