Kraft Heinz's Big Breakup

In this episode of The Journal, Jessica Mendoza interviews Jesse Newman about the breakup of Kraft Heinz, a food conglomerate formed in 2015 through a merger of Kraft and Heinz. The episode explores the reasons behind the split, including cost-cutting measures implemented by 3G Capital that led to a decline in brand value, changing consumer preferences towards healthier foods, and the impact of inflation on shopping habits. Despite a temporary resurgence during the pandemic, Kraft Heinz faced challenges in adapting to evolving market demands, ultimately leading to the decision to divide the company into two separate entities focusing on different product categories. The discussion also touches on a broader trend of breakups among legacy food companies and the tumultuous state of the food industry, which is currently navigating rising costs and consumer pressures for healthier products. The hosts also announced a live show in New York City on October 7th.