Kraft Heinz Sells North American Coffee Business for $650 Million

Kraft Heinz is restructuring its brand portfolio by selling its North American coffee business to private equity firm One Rock Capital Partners in a transaction valued at $650 million. Announced Wednesday, November 4, 2026, the agreement includes Maxwell House and Gevalia as the company shifts resources toward its core brands.

The transaction is expected to close in mid-2027, according to Kraft Heinz. The company will retain a 30% noncontrolling equity stake in the coffee business following the sale.

Kraft Heinz expects to receive $500 million in post-tax cash proceeds. According to the company, the funds will go toward reducing debt and supporting its strategy of directing investment toward areas with greater growth potential.

CEO Steve Cahillane described the agreement as part of the company's broader restructuring strategy.

"This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation," said Steve Cahillane, CEO of Kraft Heinz.

Cahillane joined Kraft Heinz in January 2026 and suspended plans to divide the company into two separate businesses. The proposed separation would have reversed the $46 billion merger completed a decade earlier.

At the time, Cahillane described the company's challenges as "fixable and within our control."

The company's turnaround strategy has also included a $700 million investment back into its business and a renewed emphasis on selected core brands, according to Kraft Heinz.

Separately, Kraft Heinz reported third-quarter earnings on Wednesday that exceeded market expectations. The company also raised its 2026 financial outlook, signaling an improvement in its projected organic sales performance.

Kraft Heinz now expects organic net sales to decline between 0.5% and 1.25% in 2026. Its previous second-quarter forecast had anticipated a potential decline of as much as 2%.

Cahillane said the company's operating strategy was progressing across its domestic and international markets.

"Our 2026 operating plan to turn around the U.S. business and accelerate growth internationally is on track," said Cahillane.

He also pointed to improving market share, sales, and volume trends across the company's regions compared with the previous year.

"Relative to last year, our market share, sales, and volume trends are improving in every region. We are increasingly meeting consumers where they are, and giving them more reasons to choose our brands," Cahillane said.

Kraft Heinz shares rose approximately 5% on Wednesday morning following the announcements, according to the company's reported market performance.