Warren Buffett Criticizes Kraft Heinz Split, Questions Effectiveness of Plan to Reverse Merger Mistake

Warren Buffett, Berkshire Hathaway's largest shareholder, criticized Kraft Heinz's plan to split into two companies, calling it a reversal of the merger he helped orchestrate in 2015, which has turned out to be one of his biggest investment mistakes. Buffett said he is disappointed the split will not be subject to a shareholder vote and expressed his disapproval directly to Kraft Heinz management. Berkshire's CEO-designate Greg Abel also expressed disapproval. Kraft Heinz shares fell 2.4% on Tuesday. Buffett didn't rule out selling Berkshire's stake in Kraft Heinz, but said any sale would require the same offer to be made to other shareholders unless someone is willing to buy the entire company.

Warren Buffett, the CEO of Berkshire Hathaway, expressed his disappointment over Kraft Heinz's decision to split into two companies, reversing the $31 billion merger he helped orchestrate in 2015. The move, announced on Tuesday, has drawn criticism from Buffett, who called it a reversal of his investment mistake [1].

The merger, which combined Kraft Foods and H.J. Heinz, has been a source of contention for Buffett, who has publicly acknowledged that the deal did not turn out to be a brilliant idea [1]. Despite the setbacks, Buffett has remained a steadfast shareholder, owning a 27.5% stake in the company [1].

The split, scheduled for 2026, aims to separate Kraft Heinz into two entities: one focusing on global sauces, condiments, and shelf-stable products, and the other centered on North American staples like Oscar Mayer, Kraft Singles, and Lunchables [2]. The decision to split the company was driven by years of sluggish performance and a 70% drop in the company's stock price since the merger [2].

Buffett's comments, made to CNBC, highlighted his disapproval of the split, stating that dismantling the company is unlikely to fix its deeper problems [1]. The CEO-designate of Berkshire Hathaway, Greg Abel, also expressed his disapproval [1]. Kraft Heinz shares fell 2.4% following Buffett's comments [1].

Buffett did not rule out the possibility of selling Berkshire's stake in Kraft Heinz but indicated that any sale would require the same offer to be made to other shareholders unless someone is willing to buy the entire company [1].

The split has been met with mixed reactions from analysts and investors. While some believe it could address long-standing issues around efficiency and allow for more focused strategies, others have expressed concerns about the potential challenges for both new companies [3].

References:
[1] https://www.financialexpress.com/world-news/us-news/warren-buffett-disappointed-over-kraft-heinz-split-as-shares-drop-7/3965687/
[2] https://www.cnbc.com/2025/09/02/warren-buffett-says-he-is-disappointed-in-kraft-heinz-split.html
[3] https://www.reuters.com/business/retail-consumer/quote-box-kraft-heinz-bets-split-growth-prospects-cloudy-2025-09-02/